QUESTION 12 On March 1, 2015, Vantage Services issued a 5% long-term notes payab

Question

QUESTION 12 On March 1, 2015, Vantage Services issued a 5% long-term notes payable for $15,000 It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. On March 1, 2016, O Vantage must accrue $5,000 of Interest Expense O Vantage must accrue for the coming $5,000 as current portion of principal payment O Vantage must pay out $750 of Interest Expense to the note holder O Vantage will receive $5,000 as an installment payment QUESTION 13

Explanation / Answer

C. Vantage must pay out $750 of Interest Expense to the note holder

Explanation:-

Interest expense = $15,000 * 5% = %750

Please Rate or comment if you have any doubt regarding this solution.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.