Question
Answer: D, please explain. On January 1, 2016, the Pruett Company signed a six-month, non-interest-bearing note payable for $170,000 and received $162,800 from Your Neighborhood
Answer: D, please explain.
On January 1, 2016, the Pruett Company signed a six-month, non-interest-bearing note payable for $170,000 and received $162,800 from Your Neighborhood Bank. On January 31, 2016, what amount should Pruett record for interest expense, and what is the net carrying value of the note?
a. $1,200; $161,600 b. $0; $170,000 c. $7,200; $170,000 d. $1,200; $164,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Frank Woods Business Accounting Volume 1
Authors: Alan Sangster, Frank Wood
13th Edition
1292084669, 9781292084664
