XYZ Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much cash will be paid for interest on December 31, 20X1? $6,000 O $0 O $9,000 O $3,000

XYZ Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much cash will be paid for interest on December 31, 20X1? $6,000 O $0 O $9,000 O $3,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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Question

XYZ Company borrowed $100,000 at a 9% interest rate
on May 1, 20X1 for one year with interest and principal
due on April 30, 20X2. How much cash will be paid for
interest on December 31, 20X1?
O $6,000
$0
O $9,000
O $3,000

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