On September 1,2015,Daylight Donuts signed a $100,000,9%,six-month note payable with the amount borrowed plus accrued interest due six months later on March 1,2016.Daylight Donuts should report interest payable at December 31,2015,in the amount of:

Question

Quizplus · Accepted Answer

Interest payable is calculated for four months (September to December) at a 9% annual rate on $100,000, which is $100,000 * 9% * (4/12) = $3,000.

On September 1,2015,Daylight Donuts Signed a $100,000,9%,six-Month Note Payable with the Amount