On September 1, 2020, Sunland Company issued a note payable to Fidelity Bank in the amount of $2691000, bearing interest at 9%, and payable in three equal annual principal payments of $897000. On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021. Sunland should record accrued interest payable of O $89700. O $80730. O $179400, O $53820.

On September 1, 2020, Sunland Company issued a note payable to Fidelity Bank in the amount of $2691000, bearing interest at 9%, and payable in three equal annual principal payments of $897000. On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021. Sunland should record accrued interest payable of O $89700. O $80730. O $179400, O $53820.

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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Question

On September 1,2020, Sunland Company issued a note payable to Fidelity Bank in the amount of $2691000, bearing interest at 9%,
and payable in three equal annual principal payments of $897000. On this date, the bank's prime rate was 10%. The first payment for
interest and principal was made on September 1, 2021. At December 31, 2021, Sunland should record accrued interest payable of
O $89700.
O $80730.
O $179400,
O $53820.

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