Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity.How would the adjustment to record interest expense on December 31, Year 1 affect the financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity.How would the adjustment to record interest expense on December 31, Year 1 affect the financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Answer of Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1, Year 1. The note had a 5% discount rate and a one-year term to maturity.How would the adjustment to record interest expense on December 31, Year 1 affect the financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Baltimore Company Issued a $9,000 Face Value Discount Note to Bank