hello teacher please solve question On October 1, 2023, Galaxy Tours Ltd. borrowed $240,000 by signing a1-year note with an 8% annual interest rate. The interest is payable atmaturity on September 30, 2024.What amount of interest payable should Galaxy Tours report onDecember 31, 2023?a) $12,800b) $9,600c) $6,400d) $4,800

Step 1: Definition of Interest PayableInterest Payable is a liability that represents the amount of…

Answered: On October 1, 2023, Galaxy Tours Ltd.…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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On October 1, 2023, Galaxy Tours Ltd. borrowed $240,000 by signing a 1-year note with an 8% annual interest rate. The interest is payable at maturity on September 30, 2024. What amount of interest payable should Galaxy Tours report on December 31, 2023? a) $12,800 b) $9,600 c) $6,400 d) $4,800