Ask Experts Questions for FREE Help !
Ask
    ginaforever33's Avatar
    ginaforever33 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 11, 2015, 01:41 PM
    Interest Payable
    At Dec. 31, 2013 bonds payable of $100,070,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $28,731,000 every September 30, beginning September 30, 2014.

    Maturity of Bonds Payable: $28,731,000

    Bonds Payable: $71,339,000
    100,070,000 - 28,731,000 = 71,339,000

    Interest Payable:??
    $28,731,000*.12= $3,447,720

    Not sure how to go about finding interest payable. Please Help.
    ginaforever33's Avatar
    ginaforever33 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Sep 11, 2015, 05:12 PM
    Or does this look correct for interest payable?

    $100,070,000 * 0.12 * (3/12) = $3,002,100

    If so, please explain to me why to use $100,070,000 instead of the maturity value ($28,731,000)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accrued interest payable for a note payable [ 2 Answers ]

Allen Corp.'s liability account balances at June 30, 2007 included a 10% note payable in the amount of $2,400,000. The note is dated October 1, 2005 and is payable in three equal annual payments of $800,000 plus interest. The first interest and principal payment was made on October 1, 2006. In...

Interest on note payable [ 1 Answers ]

Jan 1.note payable RM90000 ADJUSTING ENTRIES NEEDED AT THE END OF THE MONTH, Accrued interest on note payable is calculated to RM750. My question is how to prepare a journal for this?

Interest payable [ 2 Answers ]

On October 1, 2005, Brock, Inc. issued 200 of its 10%, $1,000 bonds at 101 plus accrued interest. The bonds are dated July 1, 2005, and mature on July 1, 2015. Interest is payable semiannually on January 1 and July 1. The answer is $207,000 I try to do it,but I don't get it right. I use...

View more questions Search