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Issue of notes payable and recognition of interest

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Leach Companv borrowed $105.000 cash by issuina a note pavable on June 1. Year 1. The note had an 6 percent annual rate of interest and a one-vear term to maturily.

1. What amount of interest expense will Leach recognize for the year ending December 31, Year 1?

2. Record the issue of notes payable and recognition of interest on December 31. Year 1, in the accounting equation for Year 1.

3. What amount of cash will Leach pay for interest expense in Year 1?

4. What is the amount of interest pavable as of December 31. Year 1?

5. What amount of cash will Leach pa for interest expense in Year 2?

6. What amount of interest expense will Leach recognize in Year 2?

7. What is the amount of interest pavable as of December 31, Year 2?

8. What amount of interest expense will Leach recognize for the year ending December 31, Year 1?

Reference no: EM133239438

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