Question

A Company issued a one-year, 9%, $200,000 note on June 1, 2019. Interest

expense for the year ended December 31, 2019 was:
O $18,000
O $13,500
O $12,000
O $10,500
O None of the above​

Answer 1

O None of the above​

Step-by-step explanation:

The expenses at the end of December 31, 2019, will be 6 months interest.

Interest = p x r x t

in this case

p= $200,000

r=9% or 0.09

t= 6 months or 0.5 years

Interest = $200,000 x 0.09 x 0.5

Interest = $ 18,000 x 0.5

Interest = $9,000