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Abardeen Corporation borrowed $90,000 from the bank on October 1, 2016. The note had an 8 percent annual rate of interest and matured on March
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2016. The note had an 8 percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on the maturity date. |
Required |
a. | What amount of cash did Abardeen pay for interest in 2016? |
b. | What amount of interest expense was recognized on the 2016 income statement? |
c. | What amount of total liabilities was reported on the December 31, 2016, balance sheet? |
d. | What total amount of cash was paid to the bank on March 31, 2017, for principal and interest? |
e. | What amount of interest expense was reported on the 2017 income statement? |
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