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8 May, 21:24

On July 8, Jones Inc. issued an $75,700, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year

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  1. 9 May, 01:14
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    Answer:=Jones recognizes $386.9 as interest

    Explanation:

    Fiscal year ending July 31st

    there are 23 days between when the cash as issued ie July 8 and the end of the fiscal year on July 31st

    Given amount or Principal amount = $75,700

    Rate = 8%

    Interest = Principal x Rate x Time

    $75,700 x 8% x 23/360=$75,700 x 0.08 x 23/360

    =$386.9

    Jones recognizes $386.9 as interest in the current fiscal year.
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Home » Business » On July 8, Jones Inc. issued an $75,700, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year
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