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Comet Corporation's liability account balances at June 30, 2013 included a 10 percent note payable. The note is dated October 1, 2011, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2012. In Comet's June 30, 2013 balance sheet, what amount should be reported as Interest Payable for this note? a) $10,000 b) $15,000 c) $30,000 d) $45,000

Comet Corporation's liability account balances at June 30, 2013 included a 10 percent note payable. The note is dated October 1, 2011, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2012. In Comet's June 30, 2013 balance sheet, what amount should be reported as Interest Payable for this note? a) $10,000 b) $15,000 c) $30,000 d) $45,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Comet Corporation's liability account balances at June 30, 2013 included a 10 percent note payable. The note is dated October 1, 2011, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2012. In Comet's June 30, 2013 balance sheet, what amount should be reported as Interest Payable for this note? a) $10,000 b) $15,000 c) $30,000 d) $45,000
Transcribed Image Text:Comet Corporation's liability account balances at June 30, 2013 included a 10 percent note payable. The note is dated October 1, 2011, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2012. In Comet's June 30, 2013 balance sheet, what amount should be reported as Interest Payable for this note? a) $10,000 b) $15,000 c) $30,000 d) $45,000
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