Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Airline accessories obtains a $100,000, three-year loan, at 6% interest, with monthly payments of $3,042. What amount would be recorded as interest expense in the second month?.

Sagot :

rafikiedu08

The amount would be recorded as interest expense in the second month is $166.67

You may calculate the amount that would be charged as interest expenditure for the first full month by first finding the reciprocal of the time period, which is 36 months (3 years). The principal and the interest rate were then multiplied by this value.

We can calculate the number as follows.

100,000'0.06 0.028 = $166.666 or $166.67

What is Interest expense?

The fee a company pays for borrowed money is known as an interest expenditure. The income statement includes interest expense as a non-operating item. It represents interest due on all borrowings, including bonds, loans, convertible debt, and lines of credit.

The basic formula for calculating it is the interest rate multiplied by the debt's outstanding principal. Not the amount of interest paid during that time period, but rather interest accrued during that time period is represented by interest expense on the income statement. Despite the fact that interest costs are tax deductible for businesses, they may not be for individuals depending on their jurisdiction and the loan's purpose.

To know more about Interest expense visit:

https://brainly.com/question/14185533

#SPJ4

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.