Question
On July 8, Jones Inc. issued an $81,700, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31.
On July 8, Jones Inc. issued an $81,700, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? When required, round your answer to the nearest dollar.
a.$313
b.$939
c.$4,902
d.$626
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Auditing The Art And Science Of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
15th Canadian Edition
