Thomas Company decided to borrow $30,000 on March 1^st, 2014. Thomas signed a 2-year 6% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2015? A) $1,800. B) $3,600. C)$300. D)$1,200.

Question

Quizplus · Accepted Answer

The interest for one year is $30,000 * 6% = $1,800. Since the note was signed on March 1, 2014, the interest for 2015 is the full year's interest, which is $1,800.

Thomas Company Decided to Borrow $30,000 on March 1st, 2014

Thomas Company Decided to Borrow $30,000 on March 1^st, 2014