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Middle Earth Company Gave a Creditor a 90-Day, 6% Note

Question 31

Essay

Middle Earth Company gave a creditor a 90-day, 6% note payable for $56,000 on December 1, 2016. What amount of interest will be accrued as of December 31, 2016? Where will this amount be reported in the company's financial statements?

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$56,000 × 6% × 1/12 = $280 rep...

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