On October 1, 2018, Mills Company borrowed $52,000 cash on a one-year note that required Mills to pay 7 percent interest and $52,000 principal, both on September 30, 2019. Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note

Respuesta :

Answer:

$910

Explanation:

As there are only 3 months left to end 2019 we will multiply the principal amount with interest and apportion it  according to remaining months

Debt to interest payable  = $52000 x 7% x 3/12

Debt to interest payable  = $910

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