Allen Inc.took out a 1-year,8%,$100,000 loan on March 31,2015.Interest is due upon maturity of the loan.The loan and interest must be paid back on March 31,2016.As of December 31,2015,what amount,if any,should Allen Inc.report for interest payable?

Question

Quizplus · Accepted Answer

Interest payable as of December 31, 2015, is calculated for 9 months (April to December) at 8% on $100,000, which equals $6,000.

Allen IncTook Out a 1-Year,8%,$100,000 Loan on March 31,2015