On september 1, joe's painting service borrows $100,000 from national bank on a 4-month, $100,000, 6% note. the entry by joe's painting service to record payment of the note and accrued interest on january 1 is:

interest = 2,000

Explanation:

We will calculate the interest on the note:

Rembemer: Notes use simple interest

Is important that time and rate are expressed in the same measurement.

rate are generally expressed annually. so we must express time on years too.

this note is a 4 month note, we should convert 4 month in years:

1 years has 12 month

X year has  4 month

X = 4/12 = 1/3 of a year

Finally the rate is express in percent, we should divide by 100 to get the decimal:

6% =  6/100 = 0.06

interest = 2,000

true basically. have an awesome day ya'll.