On May 1, Lectric Industries issued 9-month notes in the amount of $60 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
$\begin{array}{ccc}&\text { Interest rate }&\text { Fiscal Year End }\
1 . & 8 \% & \text { January } 31 \
2 . & 10 \% & \text { October } 31 \
3 . & 9 \% & \text { June } 30 \
4 . & 13 \% & \text { December } 31
\end{array}$

Question

On May 1, Lectric Industries issued 9-month notes in the amount of $60 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
 $\begin{array}{ccc}&\text { Interest rate }&\text { Fiscal Year End }\
1 . & 8 \% & \text { January } 31 \
2 . & 10 \% & \text { October } 31 \
3 . & 9 \% & \text { June } 30 \
4 . & 13 \% & \text { December } 31
\end{array}$

Quizplus · Accepted Answer

The Answer of On May 1, Lectric Industries issued 9-month notes in the amount of $60 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
 $\begin{array}{ccc}&\text { Interest rate }&\text { Fiscal Year End }\
1 . & 8 \% & \text { January } 31 \
2 . & 10 \% & \text { October } 31 \
3 . & 9 \% & \text { June } 30 \
4 . & 13 \% & \text { December } 31
\end{array}$

On May 1, Lectric Industries Issued 9-Month Notes in the Amount