On the first day of January,Harris Company borrowed $3,000 on a one-year note payable bearing interest at 5% per year.The note specifies that principal and interest must be paid in full at the end of the one-year period.On June 30,the adjusted trial balance will show Interest Payable of ________.
A)$75 credit
B)$75 debit
C)$150 credit
D)$150 debit

Question

Quizplus · Accepted Answer

A)Interest Payable = $3,000 × 5% × 6/12 = $75

On the First Day of January,Harris Company Borrowed $3,000 on a One-Year