Question

ompute total interest accrued for all of the following notes payable owed by Petry Company, as of December 31, 2019 (use a 365-day year).

Lender	Issuance Date	Principal	Coupon rate (%)	Term
Nissim	10/30/19	$20,000	11%	120 days
Klien	12/1/19	$15,000	8%	90 days
Bildersee	12/21/19	$17,000	10%	60 days

Answer 1

Calculation of Total Interest Accrued on December 31, 2019

Particulars	Amount
Nissim	373.70
Klien	98.63
Bildersee	46.58
Total Interest Owed by Petry	518.91

Notes:-

For Nissim

Interest due on Dec 31 2019 = 20,000 * 11/100 * 62/365

= $ 373.70

Number of Days = 62 Days (1 Day of October + 30 Days of November + 31 Days of December)

For Klien

Interest due on Dec 31,2019 = 15,000 * 8/100 * 30/365

= $ 98.63

Number of Days = 30 Days of December (Between 02/12/2019 to 31/12/2019)

For Bildersee

Interest due on Dec 31,2019 = 17,000 * 10/100 * 10/365

= $ 46.58

Number of Days = 10 Days of December (22/12/2019 to 31/12/2019)

In Calculation of Number of Days between nite issuance date and Dec 31,2019 for calculating Interest the date off issuance of nite should be excluded.