On 31 October, General Stores signed a six- month, 9% note payable to purchase inventory costing $10 000. The note requires payment of principal and interest at maturity. What is the account name and amount of a current liability that will be reported on the balance sheet as at 31 December?

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The interest for six months is $10,000 x 9% x 6/12 = $450. The interest payable at 31 December is $450 x 3/6 = $225. The principal payable at 31 December is $10,000 x 3/6 = $5,000. The current liability is the interest payable of $225.

On 31 October, General Stores Signed a Six- Month, 9