View the step-by-step solution to:

Straight Industries purchased a large piece of equipment from Cm'vy Company on January 1, 2010. Straight Industries signed a note, agreeing to pay My...


I dont not understand how to find the interest expense. Also, we do not have an annuity table for our tests, but use HP 10bll+ calculators and sometimes formulas, so please do not give me any answers involving annuity tables.



(please let me know what is missing in this question)

Screen Shot 2018-05-08 at 6.03.24 PM.png

Straight Industries purchased a large piece of equipment from Cm'vy Company on January 1,
2010. Straight Industries signed a note, agreeing to pay My Company $400,000 for the equipment on December 31, 2012. The market rate of interest for similar notes was 3%. On
January 1, 2010, Straight Industries recorded the purchase with a debit to equipment and a credit
to notes payable. On December 31, 2010, Straight recorded an adjusting entry to account for
interest that had accrued on the note. Assuming no adjusting entries have been made during the
year, how much interest expense would have accrued at December 31, 2010 (rounded)? A] $25,403 B] $32,000 C] $29,693 D] $22,435 E) $29,630

Top Answer

The interest expense as at December 31 2010 Is the... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online