On September 1, 2009 Calmex Corp.issued a note payable to National Bank in the amount of $900,000, bearing interest at 8 percent, and payable in three equal annual principal payments of $300,000.On this date, the bank's prime rate was 7 percent.The first payment for interest and principal was made on September 1, 2010.At December 31, 2010, Calmex should record accrued interest payable of

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The accrued interest payable on December 31, 2010, is calculated on the remaining principal balance after the first payment. After the first payment of $300,000, the remaining principal is $600,000. The interest for four months (September to December) is calculated as $600,000 * 8% * (4/12) = $16,000.