Coco Guitar Company (CGC) borrowed P160,000 from the bank signing a 9%, 3-month note on September 1, 2015. Principal and interest are payable to the bank on December 1. CGC prepares monthly financial statements. At what amount should the Interest Expense be presented in the September 2015 income statement of CGC?

Coco Guitar Company (CGC) borrowed P160,000 from the bank signing a 9%, 3-month note on September 1, 2015. Principal and interest are payable to the bank on December 1. CGC prepares monthly financial statements. At what amount should the Interest Expense be presented in the September 2015 income statement of CGC?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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