Answer:
The amount of interest has accrued as of 12/31/12: $720
Explanation:
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%.
The amount of interest Porters Inc. pays per year = $160,000 x 9% = $14,400
Assuming 1 year period to calculated interest has 360 days.
From 12/14/12 to 12/31/12, Porters Inc. had issued the note for 18 days.
The amount of interest has accrued on 12/31/12:
$14,400/360 x 18 = $720
