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Tasty Treats (which has a December 31 year-end) completed the following note-payable transactions: 2020: March 1 - Purchased refrigeration equipment costing $80,000 by issuing a
Tasty Treats (which has a December 31 year-end) completed the following note-payable transactions: 2020: March 1 - Purchased refrigeration equipment costing $80,000 by issuing a one-year, 6% note. Interest and principal will be paid on maturity. Dec 31 - Accrued interest on the note payable. 2021: February 28 - Paid the note payable and interest at maturity. Required: 1. How much interest expense must be accrued at December 31, 2020? $ 2. How much interest must be paid at December 31, 2020? $ 3. What is the total amount that must be repaid on February 28, 2021? $ 4. How much interest expense will Tasty Treats report on its income statement for 2021?$
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