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OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.4 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:
Interest Rate Fiscal year end Interest Expense
1. 11% December 31
2. 9% September 30
3. 10% October 31
4. 7% January 31
Answers: 3
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OS Environmental provides cost-effective solutions for managing regulatory requirements and environm...
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