Notes Payable Usually Require The Borrower To Pay Interest And They Are Issued T

Notes payable usually require the borrower to pay interest, and they are issued to meet short-term financing needs. Notes due for payment within 1 year of the balance sheet are usually classified as current liabilities. Cairo Company on June 1 borrows $50,000 from the First Bank on a 6-month, $50,000, 12% note. What was the total financing cost (interest expense)?

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