The Jarvis Company issued a $22,000 face value interest bearing note with a stat

Question

The Jarvis Company issued a $22,000 face value interest bearing note with a stated interest rate of 9.2%, and a one-year term. The note was issued to the National Bank on August 1, 2011.

The amount of interest expense and cash outflow shown on the 12/31/2011 financial statements would be: (Round your answer to nearest whole number.)

  

  

The Jarvis Company issued a $22,000 face value interest bearing note with a stated interest rate of 9.2%, and a one-year term. The note was issued to the National Bank on August 1, 2011.

The amount of interest expense and cash outflow shown on the 12/31/2011 financial statements would be: (Round your answer to nearest whole number.)

  

Interest Expense Cash Outflow

  

$2,024 $246 $843 $843 $843 $0 $2,024 $0

Explanation / Answer

Interest Expense 22000*9.2%*5/12 843 Interest Payable The correct answer is C. Interest Expense $ 843 and Cash Outflow is 0

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