Harveys Corporation borrowed $60,000 from the bank on November 1, 2013. The note had a 6 percent annual rate of interest and matured on April 30, 2014. Interest and principal were paid in cash on the maturity date.
Required:
a. What amount of cash did Harveys pay for interest in 2013?
b. What amount of interest expense was reported on the 2013 income statement?
c. What amount of total liabilities was reported on the December 31, 2013, balance sheet?
d. What total amount of cash was paid to the bank on April 30, 2014, for principal and interest?
e. What amount of interest expense was reported on the 2014 income statement?