Abardeen Corporation borrowed $143,000 from the bank on October 1, 2016, The not

Question

Abardeen Corporation borrowed $143,000 from the bank on October 1, 2016, The note had an percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in 2016? Amount of cash paid b. What amount of interest expense was recognized on the 2016 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) nterest expense c. What amount of total liabilities was reported on the December 31, 2016, balance sheet? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Total liabilities d. What total amount of cash was paid to the bank on March 31, 2017 for principal and interest? Amount of cash paid e. What amount of interest expense was reported on the 2017 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Interest expense

Explanation / Answer

a) Amount of cash paid $0 b) Interest expense $2,145 (143000*6%*3/12 2145 c) total liabilities 145,145 note payable 143,000 interest payable 2,145 d) Amount of cash paid 147290 (143000 + 143000*6%*6/12) e) interest expense $2,145

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