Question

Accrued Interest Payable
Compute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31:
Use 360 days for calculations and round the nearest dollar.

Lender	Date of Note	Principal	Interest Rate	(%)	Term
Maple	November 21	$21,000	10%		120 days
Wyman	December 13	17,000	9%		60 days
Nahn	December 19	19,000	12%		90 days

Lender	Accrued Interest
Maple	$Answer
Wyman	Answer
Nahn	Answer

Answer 1

Accrued Interest as on December, 31 = Principal * Interest Rate * (Number of Days till December 31 from the Date of Note)/ 360 Days in a Year

Hence,

Lender	Date of Note	Principal	Interest Rate	(%)	Term	As on December 31, Number of Days	Interest
Maple	21-Nov	21,000	10%		120 days	40	233
Wyman	13-Dec	17,000	9%		60 days	18	77
Nahn	19-Dec	19,000	12%		90 days	12	76

Hence the correct answer is:

Lender	Accrued Interest
Maple	$ 233
		Wyman	$ 77
Nahn	$ 76