Question

g Brokaw Industries signs a $40,000, 9%, 6-month note payable on September 1, 2021. How much interest expense will Brokaw report in its 2022 financial statements

Answer 1

$600

Step-by-step explanation:

Calculation to determine How much interest expense will Brokaw report in its 2022 financial statements

Based on the information given they will have to incur two months of interest expense which is January and February since four months went by in 2021 starting from September to December

Now let calculate the interest expense

Interest expense =$40,000 x .09 x 2/12

Interest expense =$600

Therefore the amount of interest expense that Brokaw will report in its 2022 financial statements is $609

$600