Question

Date of NoteFace AmountInterest RateTerm of Notea.January 5 *$90,000 60 days b.February 15 *21,000 4 30 days c.May 1968,000

Answer 1

Answer and Explanation:

The computation is shown below:

Note Due date Interest Explanation

a) May-04 $ 1,800 ($ 90,000 × 6% × 120 ÷ 360)

b) Mar-16 $70 ($21,000 × 4% × 30 ÷ 360)

c) Jul-03 $680 ($68,000 × 8% × 45 ÷ 360)

In this way the interest expense should be calculated

The same should be relevant and considered too