DR Electric Supply reported interest expense of $6,300 for the year.Interest payable was $780 and $920 at the beginning and the end of the year, respectively.How much cash did DR Electric Supply pay for interest during the year?

Question

Quizplus · Accepted Answer

The cash paid for interest can be calculated using the formula: Cash Paid = Interest Expense + Beginning Interest Payable - Ending Interest Payable. Thus, Cash Paid = $6,300 + $780 - $920 = $6,160.

DR Electric Supply Reported Interest Expense of $6,300 for the Year.Interest