Interest question accounting?

Four Oaks Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here.

Answer 1

50 / 5,000 = 1%
Since the interest rate is 12% per year and 1% is 1/12 of 12%, the note has been outstanding for one month.

Source(s): Accounting Fan

Leave a Comment