What is amount of interest expense recognized on December

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Question - Kermit Inc. borrows $250,000 by signing a 90-day, 9% note on October 22nd. The accounting period ends on December 31.

Instructions -

What is the amount of interest expense recognized on December 31? Should the company accrue any interest? Include your computations in your answer.

What is the amount of cash paid on December 31 for the note? Include your computations in your answer.

What is the amount of interest revenue earned that should be recorded on this note on December 31? Include your computations in your answer.

At what date should this note be repaid and how much interest expense should be recognized at that date? Include your computations in your answer.

Reference no: EM132561587

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