OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1^st the company issues a one-year note for the amount of $6 million. Interest is payable at maturity.

Required:

Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions.

Interest rate Fiscal Year End

1. 11% December 31^st

2. 9% September 30^th

3. 10% October 31^st

4. 7% January 31^st.