i am stuck on the following question. here is a picture of the question
please show all work/how u got the answer
any help would be appreciated
a) Classic did not pay any amount for interest in 2010.
b)Amount of interest expense was reported on the 2010 income statement (for two months November and December 2010) = $120,000 *8% *2/12= $1,600
c)Total liabilities on the December 31, 2010:
Notes Payable $120,000
Interest Payable 1,600
Total liabilities $121,600
d) Interest expense for 2010 and 2011 =$120,000 *8%*6/12
Total amount of cash was paid to bank on April 30, 2011 for principal and interest;
Add interest payable 4,800
Total cash payment to bank $124,800
e) Amount of interest expense was reported on the 2011 income statement(for four months from January 1 to April 30, 2011 = $120,000 * 8%*4/12
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