Reference no: EM133180076

Question - During 2014, Alabaster Co. borrowed cash from Fuchsia Enterprises by issuing notes payable as follows:

1. June 1, 2014, issued a seven-month, 4% note for $50,000. Interest and principal are payable at maturity.

2. September 30, 2014, issued a one-year, 3.5% note for $80,000. Interest is payable quarterly, on December 31, 2014, and March 31, June 30, and September 30, 2015. Principal is payable at maturity.

3. October 1, 2014, issued a three-month, 5.5% note for $45,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity.

Both Alabaster and Fuchsia prepare adjusting entries on an annual basis. Alabaster has an October 31 fiscal year end. Fuchsia's fiscal year end is November 30. Calculate the accrued expense for Alabaster Co. at October 31, 2014.