jupiter, inc. signed a oneminusyear $ 42 comma 000 note payable at 8% interest on april 1, 2016. if jupiter, inc. only adjusts its accounts once a year at yearminusend, how much interest expense was accrued on december 31, 2016? (round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.)

The accrued interest is $2,520

Explanation:

The computation of accrued interest is shown below:

= (Notes payable amount) × (interest rate) × (number of months ÷ total number of months in a year)

= ($42,000) × (8%) × (9 months ÷ 12 months)

= $2,520

The 9 months is computed from April 1, 2016, to December 31, 2016 . Moreover, all the item values are to be considered in the computation part.