Question
Company A accepted an 8-month, $6,000 note receivable, with 7% interest, from Company B on August 1, 2001. Company A's year end is December 31.
Company A accepted an 8-month, $6,000 note receivable, with 7% interest, from Company B on August 1, 2001. Company A's year end is December 31. The amount of interest to be accrued on December 31, 2001 is:
a)$210
b) $420
c) $175
d) none
I got A but the answer is C can someone explain?
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
