On July 1, 2024, LI-Ma Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.) Fiscal Year End: December 31, 2024 September 30, 2024 October 31, 2024 January 31, 2025 Principal (million) S S $ S 400 400 M 400- 400x M Interest Rate 14% 13 % 12 % 9 % *** M M N Time 4/12 3/12 2/12 3/12 . Interest Expense 1 million 3 million 3 million 3 million $ W $ W $ $ #
On July 1, 2024, LI-Ma Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.) Fiscal Year End: December 31, 2024 September 30, 2024 October 31, 2024 January 31, 2025 Principal (million) S S $ S 400 400 M 400- 400x M Interest Rate 14% 13 % 12 % 9 % *** M M N Time 4/12 3/12 2/12 3/12 . Interest Expense 1 million 3 million 3 million 3 million $ W $ W $ $ #
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2024, Li-Ma Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following
independent assumptions:
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.)
Fiscal Year End:
December 31, 2024
September 30, 2024
October 31, 2024
January 31, 2025
Principal
(million)
$
$
$
S
400 K
400
400 x
400 x
X
Interest
Rate
14 %
13 %
12 %
9 % x
XX
M
Time
4/12
3/12
2/12
3/12
Interest Expense
1 million
3 million
3 million
3 million
= $
$
$
= $
=
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