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8. Allen took out a three-year, 8%, $100,000 loan on March 31, 2021. Interest is due upon maturity of the loan. How much interest will Allen pay in 2021.
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8. Allen took out a three-year, 8%, $100,000 loan on March 31, 2021. Interest is due upon maturity of the loan. How much interest will Allen pay in 2021.

User Rnofenko
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1 Answer

5 votes

Answer:

Debit Interest Expense and credit Interest Payable for $6,000.

Step-by-step explanation:

$100,000 × 8% × 9/12 = $6,000.

User Niels Bosman
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