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 $ $ #

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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