Arlington has a debt service fund which it uses to pay the principal and interest on its $2,000,000 of general long-term debt.Interest at 5 percent is due on October 1 and April 1.On October 1,2008,and April 1,2009,Arlington's debt service fund paid $50,000 of interest due on its bonds.On the balance sheet prepared on June 30,2009,for Arlington's debt service fund,interest payable should be reported at:
A) $0.
B) $16,667.
C) $25,000
D) $50,000.
Correct Answer:
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