Determine the amount of interest expense

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On July 1, 2016, Ross-Livermore 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: (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Fiscal Year Ends: Principal x Rate x Time = Interest Expense

December 31, 2016 $400 x 12 % x = million

September 30, 2016 $400 x 10 % x = million

October 31, 2016 $400 x 9 % x = million

January 31, 2017 $400 x 6 % x = million

Reference no: EM131293676

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