Q4

On August 1, 2026, Bullock Company borrowed $27,000 from a bank on an 8%,7-month note payable. Bullock Company borrowed $60,000 from a bank on February 1, 2027 on a 5%, 11-month note payable. On June 1, 2027, Bullock Company borrowed $36,000 from a bank on a 14%, 9-month note payable. Calculate the total amount of interest expense related to these three loans that Bullock Company would report in its 2027 income statement. On August 1, 2026, Bullock Company borrowed $27,000 from a bank on an 8%,7-month note payable. Bullock Company borrowed $60,000 from a bank on February 1, 2027 on a 5%, 11-month note payable. On June 1, 2027, Bullock Company borrowed $36,000 from a bank on a 14%, 9-month note payable. Calculate the total amount of interest expense related to these three loans that Bullock Company would report in its 2027 income statement