Thurston Company Started Its Business on January 1, Year 1

Essay

Thurston Company started its business on January 1, Year 1 by issuing $15,000 of common stock. On March 1, Thurston issued a $27,000, 6% five-year note to Community Bank. Customers paid Thurston $54,000 for services performed in Year 1. The company paid $33,000 for operating expenses, and paid a $900 dividend to the stockholders. At year-end, Thurston recognized interest expense on the note.
Required:a)What is the amount of interest expense Thurston will recognize in Year 1?b)What is the net income for Year 1?