On January 31, 2009, B Corp. issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2008, and mature on December 31, 2018. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2009, balance sheet?
A)$18,000.
B)$36,000.
C)$54,000.
D)$48,000.The interest payable at September 30, 2009, will be for the three month's interest that has accrued since the last interest was paid on June 30, 2009 ($600,000 12% 3/12 = $18,000).

Question

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The interest payable at September 30, 2009, will be for the three month's interest that has accrued since the last interest was paid on June 30, 2009 ($600,000 12% 3/12 = $18,000).