Question

Oklahoma Oil Corp. paid interest of $792,000 during 2021, and the interest payable account decreased by $129,500. What was interest expense for the year

Answer 1

The interest expense for the year is $662,500.

Step-by-step explanation:

The following are given in the question:

Interest paid during the year 2021 = $792,000

Amount of decrease in interest payable account = $129,500

The interest expense for the year can be calculated as follows:

Interest expense for the year = Interest paid during the year 2021 - Amount of decrease in interest payable account = $792,000 - $129,500 = $662,500

Therefore, the interest expense for the year is $662,500.