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E8-13B. Computing Accrued Interest, page 412 a. Delta: b. Echo c. Foxtrot:
Expert Answer
the following table shows the computation of accrued interest on notes receivable:
interest amount = note amount * interest rate * (number of days till 31st december)/ number of days in the year
(let us assume the year has 360 days).
| a.Delta | number of days = 10 days in november + 31 days in december =>41 days | Interest = $54,000*7%*41/360 =>$430.5 |
| b.Echo | number of days = 19 days in december | $42,000*9%*19/360=>$199.50 |
| C.Foxtrot | number of days = 15 days in december | $63,000*8%*15/360=>$210 |
