Answer:
(A) October 1st
Cash 79,000,000
Note Payable 79,000,000
Interest Expense 2,172,500
Interest Payable 2,172,500
Explanation:
(A) there is no information about the note being use to receive cash or to settle a previous debt, we assuem is for cash.
(B)
principal \times rate \times time = interest \\
79,000,000 \times 0.11 \times 3/12 = 2,172,500
It is import to have the time and rate in the same measurement. the rates are usually annual, so we most express time in years.
