Answer:
$26
Explanation:
Note payable is a financial instrument. In this situation note payable due date is after 3 months. So, after one month we will record interest on note payable as follows:
7800*4%*(3/12) = 78
For 1 month = 78/3 = 26
The note payable was sold on dec-1, and we need to calculate its interest on dec-31, which is one month. So, we will divide total interest 78 by 3. This will give us one months interest.
