ABC Company signed a 5-year note payable for $80,000 at 9% annual interest.What is the interest expense for December 31,2012 if the note was signed on May 1,2012?
A) $7,200
B) $4,800
C) $2,400
D) $36,000

Name: ABC Company signed a 5-year note payable for $80,000 at 9% annual interest.What is the interest expense for December 31,2012 if the note was signed on May 1,2012? A) $7,200 B) $4,800 C) $2,400 D) $36,000
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B) Calculation: $80,000 × 9% × 8/12 = $4,800

ABC Company Signed a 5-Year Note Payable for $80,000 at 9