Accrued Expenses ACCRUED INTEREST Illustration: Pioneer Advertising signed a three-month note payable in the amount of $5,000 on October 1. The note requires Pioneer to pay interest at an annual rate of 12%. Illustration 3-17 Interest Face Value of Note X X Annual Interest Rate 12% Time in Terms of One Year 1 $50 $5,000 Oct. 31 L03 2. New Slang Pest Control borrowed $20,000 by signing a 10%, one-year note on July 1, 2014. 20 Cash 20