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What is the interest expense? Please explain the answer step by step. Thank you! Maurice Inc. was started on January 1, 2017 and provided you
What is the interest expense?
Please explain the answer step by step. Thank you!
Maurice Inc. was started on January 1, 2017 and provided you with the following ending balances of its accounts on December 31, 2017: Cash Equipment Accounts payable Accounts receivable Buildings Note payable A, due March 31, 2018 Sales revenue Note payable B, due December 31, 2019 $44,800 36,000 Advertising expense 85,120 97,440 Inventory 560,000 Prepaid rent Salary and wages expense $78,400 11,200 6,720 11,200 6,720 744,880 36,960 201,600 Salary and wages payable 33,600 Common shares 448,000 Rent expense 66,000 Cost of goods sold Note payable A was issued by Maurice Inc. on March 31, 2017. The principal and the interest are due on March 31, 2018. Annual interest rate is 10%. The interest expense for 2017 was not recorded. Note payable B was issued by Maurice Inc. on July 1, 2017. The interest is payable semi-annually on July 1 and January 1 every year. Annual interest rate is 8%. The principal is due on December 31, 2019. Interest on Note B has not been recorded in 2017Step by Step Solution
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