Determining accrued interest in various situations
Response to the following problem:
On July 1, 2016, Ross-Livermore Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
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Interest Rate
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Fiscal Year-End
|
|
1.
|
12%
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December 31
|
|
2.
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10%
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September 30
|
|
3.
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9%
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October 31
|
|
4.
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6%
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January 31
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