Phipps Company borrowed $25,000 cash on October 1,2010,and signed a six-month,8% interest-bearing note payable with interest payable at maturity.The amount of interest expense to be reported during 2011 is which of the following?

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2011 interest expense ($500) = Amount borrowed ($25,000) F1F1F1S1F1F1F10 Interest rate (8%) F1F1F1S1F1F1F10 Number of months borrowed during 2011 relative to a year (3 F1F1F1S1F1F1F10 12)

Phipps Company Borrowed $25,000 Cash on October 1,2010,and Signed a Six-Month,8