Thomas Company decided to borrow $30,000 on March 1^st, 2016. Thomas signed a 2-year 6% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2017? A)$1,800. B)$3,600. C)$300. D)$1,200.

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The interest for one year is $30,000 * 6% = $1,800. Since the note was signed on March 1, 2016, by December 31, 2017, 22 months have passed. However, the adjustment for December 31, 2017, is for the interest accrued in 2017, which is 10 months (from March 1, 2017, to December 31, 2017). Therefore, the interest for 2017 is $1,800.

Thomas Company Decided to Borrow $30,000 on March 1st, 2016

Thomas Company Decided to Borrow $30,000 on March 1^st, 2016