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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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