Answer:
the accrued interest as on Dec 31,2019 is $5,400
Explanation:
The computation of the accrued interest as on Dec 31,2019 is as follows:
= Note amount × rate of interest × number of days ÷ total number of days
= $540,000 × 0.06 × 60 days ÷ 360 days
= $5,400
The 60 days is calculated from the Nov 1 to Dec 31
Hence, the accrued interest as on Dec 31,2019 is $5,400
We simply applied the above formula so that the correct value could come
And, the same is to be considered
