What is the amount of interest expense in 2016

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Problem: Bill Darby started Darby Company on January 1, 2016. The company experienced the following events during its first year of operation: 1. Earned $1,900 of cash revenue. 2. Borrowed $2,000 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, 2016, had a one-year term and a 9 percent annual interest rate.

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Question: What is the amount of interest expense in 2016?

Reference no: EM132440530

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