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Business, 25.03.2020 02:01 alexiaaaa234

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

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