At its December 31 year end, Jamison Company recorded $ 200 interest payable on a $ 10,000, three-month, 5% note payable. The company's financial statements will present notes payable of $ 10,200.

Question

Quizplus · Accepted Answer

The notes payable should be presented as $10,000, and the $200 interest payable should be recorded separately as a liability, not added to the notes payable.

At Its December 31 Year End, Jamison Company Recorded