Answer:
The $75 amount of interest expense is accrued at December 31 on the note.
Explanation:
The interest expense amount which is accrued at December 31 is shown below:
= Face value × interest rate × months ÷ total number of months
= $15,000 × 6% × 1 ÷ 12
= $75
where,
total number of months is 12 in a year
And, for 1 month we have to compute the accrued interest expense. The one month is calculated from December 1 to December 31.
We don't recognized the signed days as we have to compute the interest expense till December 31. That's why we ignored this part.
Thus, the $75 amount of interest expense is accrued at December 31 on the note.
