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On October 1, 2018, Perry Corporation signed a 12-month, 8% interest-bearing promissory note for $10,000. Assume that al…
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On October 1, 2018, Perry Corporation signed a 12-month, 8% interest-bearing promissory note for $10,000. Assume that all appropriate adjusting journal entries were made at 12/31. The journal entry required when the note matures on October 1, 2019 would include a debit to interest expense for
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2023-04-07T05:49:11+00:00
2023-04-07T05:49:11+00:00 1 Answer
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$600 Reason: The annual rate of interest is 8% so the total interest of $800 is multiplied by the faction of the year or 9/12 (for 2019)