How much is the monthly interest expense

Assignment Help Accounting Basics

Reference no: EM131883454

Problem

Jesse Company adjusts its accounts monthly and closes its accounts on December 31. On October 31, 2015, Jesse Company signed a note payable and borrowed $120,000 from a bank for a period of six months at an annual interest rate of 6 percent.

a. How much is the total interest expense over the life of the note?

b. How much is the monthly interest expense? (Assume equal amounts of interest expense each month.)

Reference no: EM131883454

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