Becki Jean Corporation issued a one-year, 6%, $300,000 note on April 30, 2014. Interest expense for the year ended December 31, 2014 was

Name: Becki Jean Corporation issued a one-year, 6%, $300,000 note on April 30, 2014. Interest expense for the year ended December 31, 2014 was
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Question

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The note is for one year, but only 8 months of interest (from May to December) should be recorded for the year ended December 31, 2014. The interest expense is calculated as $300,000 * 6% * (8/12) = $12,000.

Becki Jean Corporation Issued a One-Year, 6%, $300,000 Note on April