The following notes were received by Davis Company during 20

The following notes were received by Davis Company during 2016:

Compute the maturity value of each note.
Analyze: What is the total interest expense on these notes for the year?

Solution

Assuming the interest rates given here are for a year.

Interest of note 21 50000*0.08*3/12 = 1000

Interest of note 22. 14000*0.1*90/365 = 345

Interest of note 23 8000*0.09*3/12 = 180