Homework SourseCalculate interest expense for 20X2 based on the following i
Calculate interest expense for 20X2 based on the following information:
Accrued interest expense at 31 December 20X1: $10,000
Accrued interest expense at 31 December 20X2: $5,000
Interest paid in cash in 20X2: $95,000
Interest capitalized into construction in progress in 20X2: $0
Select one:
a. $90,000
b. $100,000
c. $85,000
d. $95,000
e. $105,000
Solution
A.$90,000.
| interest paid in cash | $95,000 |
| add: accrued interest expense at 31 december 20x2 | 5,000 |
| less: accrued interest expense at 31 december 20x1 | 10,000 |
| less; interest capitalised | $0 |
| interest expense for 20x2 | $90,000 |
