Calculate the interest expense in february


Solve the below problem:

Q: On February 1, 2011, Willmar Corporation borrowed $100,000 from its bank by signing a 12 percent, 15-year note payable. The note calls for 180 monthly payments of $1,330. Each payment includes an interest and a principal component.

a. Compute the interest expense in February. (Omit the "tiny_mce_markerquot; sign in your response.)

b. Compute the portion of Willmar's March 31, 2011, $1,330 payment that will be applied to the principal of the note.

c. Compute the carrying value of the note on April 30, 2011 (round to the nearest dollar).

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Accounting Basics: Calculate the interest expense in february
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