additionally what is the total cash including interest paid for the building pur

Question

additionally what is the total cash including interest paid for the building purchased by Abel? and how much must able pay Regal corporation on September 1st 2019 when the note matures?

am Help Save Required information [The following information applies to the questions displayed below] On September 1, 2018. Able Company purchased a building from Regal Corporation by paying $440,000 cash and issuing a one-year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 0% and is paid at maturity In its December 31, 2018, balance sheet, Able correctly presented the note and interest payable as follows: Interest payable Notes payable, 9%, due September 1, 2019 13,858 $435,000 What is the amount of the interest expense Able will recognize on this note in 2019? Multipie Choice

Explanation / Answer

Interest expense Able will recognise on this note in 2019 bonds pauble on Septembet 1,2019 , so interest is to be Piad in 2019 is for 8 Months (jan to August) Interest expense for 2019 =$435,000 *0.09*8/12 =$26100 total cash including interest paid for the building purchased by Abel Amount in $ Amount of cash paid 4,40,000 Amont paid through Bonds issued 4,35,000 Intereset paid Interest expense in 2018 13050 Interest expense in 2019 26100 39150 Total amount of Cash paid 9,14,150 how much must able pay Regal corporation on September 1st 2019 when the note matures? incase of mature of bonds , the amount payable is maturity amount and Interest payable at 9% over the period of Bonds Amount in $ maturity Amount 435000 Interest Payable in2018 13050 Interest Payable in2019 26100 Total Amount payable at maturity 474150

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