Question

Dunes de Cor ar tan ne an 2014 머Mng nons n yable o S3 9 accrued at December 31, 2014. illan Du ng 2014 Dunesi e barraw d S2 2 milian an rat s payable and id off $1 a mil an nat s p ya le terest expense ar neyear was $1.1 il an inc uding $04 illano trest payable a Pnoryn rs. Show what Duneside shoud rrport for thesn facts o .Income siaternent for 2014 the following financial statemcnts (Enter all amounts in millars. a. Irterest expense 2. Balance sheet as of December 31, 2014 a. Notes payable b. Interest payable 1. Show what Duneside shouid report for tnese facts on the income etstement. Accounts In rilions) a. Interrst nse

Answer 1

1. Income statement for 2014
Accounts	In millions
a. Interest expense [Interest paid + Interest payable]	$1.10

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2. Balance sheet as of December 31, 2014
Accounts	In millions
a. Notes Payable       [Refer working note]	$4.30
b. Interest Payable	$0.40

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Working note - Computation of balance in notes payable as of December 31, 2014
	In millions
Balance in notes payable as of January 1, 2014	$3.90
Add: Amount borrowed though notes during 2014	$2.20
	$6.10
Less: Notes payable paid off during 2014	$1.80
Balance in notes payable as of December 31, 2014	$4.30