Prepare adjusting entry florenda quino forwarders borrowed 600,000 from the bank on September 1 2013. The note carried an % annual rate of interest and was set to mature on feb 28, 2014 interest and principal we're paid in cash on the maturity date

required

1. what was the amount of interest expense paid in cash in 2013?
2. what was the amount of interest expense recognized on the 2013 income statement ?
3.what was the amount of the total liabilities shown on the 2013 balance sheet ?
4. what was the total amount of cash that was paid to the bank on feb 28, 2014 for principal and interest?
5. what was the amount of interest expense shown on the 2014 income statement?

the interest rate is missing, so I looked for similar questions and found that it is 8%:

1. what was the amount of interest expense paid in cash in 2013?

interest expense = $600,000 x 8% x 4/12 = $16,000

2. what was the amount of interest expense recognized on the 2013 income statement ?

$16,000

3.what was the amount of the total liabilities shown on the 2013 balance sheet ?

notes payable $600,000

interest payable $16,000

total $616,000

4. what was the total amount of cash that was paid to the bank on feb 28, 2014 for principal and interest?

total interest expense = $600,000 x 8% x 6/12 = $24,000

total cash paid = $624,000

5. what was the amount of interest expense shown on the 2014 income statement?

interest expense 2014 = $24,000 - $16,000 = $8,000

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