Grand Falls Inc.has a term loan outstanding of $500,000 with an interest rate of 8%.They make interest payments quarterly, and the last one was November 30, 2014.What amount would be reported as interest payable on their December 31, 2014, balance sheet?

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The interest accrues on a quarterly basis, and since the last interest payment was made on November 30, 2014, the interest for December has not been paid yet. Therefore, the interest payable as of December 31, 2014, would be for one-quarter of the year, which is $500,000 x 8% x 1/4 = $10,000.