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**quick question Assume that New York Company completed the following note-payab

ID: 2491401 • Letter: #

Question

**quick question

Assume that New York Company completed the following note-payable transactions. Requirement 1. How much interest expense must be accrued at December 31, 2012? (Round your answer to the nearest whole dollar.) The interest expense accrued at December 31, 2012 is $. Requirement 2. Determine the amount of New York's final payment on April 1, 2013. The amount of New York's final payment on April 1, 2013 is $. Requirement 3. How much interest expense will New York report for 2012 and for 2013? (Round your answer to the nearest whole dollar.) The company will report interest expense of $ in 2012 and $ in 2013. How much interest expense must be accured at December 31, 2012? (Round your answer to the nearest whole dollar.) Determine the amount of New York's final payment on April 1, 2013. How much interest expense will New York report for 2012 and for 2013? (Round your answer to the nearest whole dollar.)

Explanation / Answer

Interest accrued at Dec 31,2012=87000*6/100*9/12=$3915

Final payment on April 1,2013=87000 + (87000*6/100) = $92220

Interest expense for 2012 will be for 9 months and for 3 months for 2013.

2012=87000*6/100*9/12=$3915

2013=87000*6/100*3/12=$1305