On June 30, 2009, Chu Industries issued 9-month notes in the amount of $700,000. Assume that interest is payable at maturity in the following three independent cases:
Required:
Determine the amount of interest expense that should be accrued in a year-end adjusting entry under each assumption:
$$\begin{array}{l}
\text { Interest rate } \quad \text { Fiscal Year End }\
\begin{array} { c c c }
\text { 1. } & 9 \% & \text { December } 31 \
\text { 2. } & 6 \% & \text { August } 31 \
\text { 3. } & 12 \% & \text { October } 31
\end{array}
\end{array}$$

Question

On June 30, 2009, Chu Industries issued 9-month notes in the amount of $700,000. Assume that interest is payable at maturity in the following three independent cases:
Required:
Determine the amount of interest expense that should be accrued in a year-end adjusting entry under each assumption:
 $$\begin{array}{l}
\text { Interest rate } \quad \text { Fiscal Year End }\
\begin{array} { c c c } 
\text { 1. } & 9 \% & \text { December } 31 \
\text { 2. } & 6 \% & \text { August } 31 \
\text { 3. } & 12 \% & \text { October } 31
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The Answer of On June 30, 2009, Chu Industries issued 9-month notes in the amount of $700,000. Assume that interest is payable at maturity in the following three independent cases:
Required:
Determine the amount of interest expense that should be accrued in a year-end adjusting entry under each assumption:
 $$\begin{array}{l}
\text { Interest rate } \quad \text { Fiscal Year End }\
\begin{array} { c c c } 
\text { 1. } & 9 \% & \text { December } 31 \
\text { 2. } & 6 \% & \text { August } 31 \
\text { 3. } & 12 \% & \text { October } 31
\end{array}
\end{array}$$

On June 30, 2009, Chu Industries Issued 9-Month Notes in the Amount