On the first day of January,Builders Company borrowed $1,000 on a one-year note payable bearing interest at 3% per year.The note specifies that principal and interest must be paid in full at the end of the one-year period.On June 30,the adjusted trial balance will show Interest Payable of ________.
A) $15 credit
B) $15 debit
C) $30 credit
D) $30 debit

Question

Quizplus · Accepted Answer

A) Interest Payable = $1,000 × 3% × 6/12 = $15

On the First Day of January,Builders Company Borrowed $1,000 on a One-Year