Mariner,Inc.bought a lobster boat on November 1,2011 in exchange for a 2-month,6%,$80,000 note.The note plus interest will be repaid on January 1,2012,the maturity date.How much interest payable should the company report on its balance sheet at December 31,2011?

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The interest for two months is calculated as $80,000 * 6% * (2/12) = $800. Since one month has passed by December 31, 2011, the interest payable is $80,000 * 6% * (1/12) = $400. However, the full interest for the note is $800, which is the amount payable at maturity.