On April 1,20A,$1,000 cash was borrowed for one year on a 6% interest-bearing note.What is the interest expense for 20A?
A)$0
B)$15
C)$45
D)$60

Name: On April 1,20A,$1,000 cash was borrowed for one year on a 6% interest-bearing note.What is the interest expense for 20A? A)$0 B)$15 C)$45 D)$60
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Question

Quizplus · Accepted Answer

The interest expense for 20A is calculated for the period from April 1 to December 31, which is 9 months. The annual interest is $60 (6% of $1,000), so for 9 months, it is $45 ($60 * 9/12).

On April 1,20A,$1,000 Cash Was Borrowed for One Year on a 6