The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.

The McAllister Company borrowed $40,000 from a bank on January 1, 2021 at an interest rate of 4 percent; the loan will be repaid in full at the end of the two-year term. What amount of interest expense will the company record in its financial statements for the year 2022? As needed, round your final answer (but not intermediate steps) to the nearest whole dollar and enter as a positive number.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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