Question

During the current year, Penman Inc. issued three short-term notes payable with principal and interest due at the end of the term of the note. Compute interest accrued for each of the notes payable as of December 31 of the current year (assume a 365-day year). Round answers to two decimal places. Lender Issuance Date Principal Coupon Rate (%) Term Accrued Interest Nissim 11/21 $30,000 10% 120 days Answer Klein 12/13 22,000 8 90 days Answer

Answer 1

Answer and Explanation:

The computation of the interest accrued for each of the notes payable is given below:

Nissim $328.77 ($30,000 × 10% × 40 ÷ 365)

Klein $86.79  ($22,000 × 8% × 18 ÷ 365)

In this way it should be calculated and determined

The same should be considered and relevant