Based on the records given Winn will file whole activity price of $200. Total pastime expense=$15,000 x . 8 x (60/360) = $200. Inconclusion Winn will report total interest cost of $200
An pastime price is the fee incurred by means of an entity for borrowed funds. Interest fee is a non-operating fee shown on the income statement. It represents hobby payable on any borrowings—bonds, loans, convertible debt or lines of credit.
For example, a commercial enterprise borrows $1000 on September 1 and the hobby price is 4 percentage per month on the loan balance. The interest price for September will be $40 ($1000 x 4%). The enterprise then can pay $500 on the mortgage on October 1. The activity price for October will be $20 (500 x 4%).
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