Answer:
interest expense = $1,632
Explanation:
the original journal entry to record the purchase is:
April 1, 2013, truck purchased
Dr Truck 34,000
Cr Cash 6,800
Cr Notes payable 27,200
the interest expense = $27,000 x 8% x 9/12 = $1,632
the journal entry to record the payment of the note payable is:
December 31, 2013, payment of note payable
Dr Notes payable 27,200
Dr Interest expense 1,632
Cr Cash 28,832
