Total interest expense on the note for this six-month period was $4 410. If this is the companys
QUESTION
A company borrowed $100,000 from a bank on July 1, 2004. The company made monthly payments of $5,235 on the note at the end of each month from July through December. Total interest expense on the note for this six-month period was $4,410. If this is the companys only note, what amount should the company report on its December 31, 2004 balance sheet for notes payable?
a. $100,000
b. $95,590
c. $73,000
d. $68,590
c. $73,000 Monthly payments for six months = $5,235 * 6 = $31,410 Interest included in the payments = $4,410 Thus principal paid in 6
months = $31,410 $4,410 = $27,000 And remaining principal = $100,000 $27,000 = $73,000
ANSWER:
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