Accounting solution River Valley Inc. borrowed $600,000 on May 1, 2024, and signed a 15-monthnote bearing interest at 6%. Interest is payable in full at maturity on July 31,2025. What amount should River Valley Inc. report as interest payable atDecember 31, 2024?a. $36,000b. $24,000c. $20,000d. $12,000

Step 1: Definition of Interest PayableInterest payable is the amount of interest expense that has…

Answered: River Valley Inc. borrowed $600,000 on…

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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Kinsella Seed borrowed $200,000 on October 1, 2022, at 10% interest. The interest and principal are due on October 1, 2023. What journal entry should be made with respect to the interest payment on October 1, 2023? a. Debit Cash 20,000; credit Interest Expense 15,000; credit Interest Payable 5,000. b. Debit Interest Expense 15,000; credit Cash 15,000. c. Debit Interest Expense 20,000; credit Cash 20,000. d. Debit Interest Expense 15,000; debit Interest Payable 5,000; credit Cash 20,000. Feedback Area

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River Valley Inc. borrowed $600,000 on May 1, 2024, and signed a 15-month note bearing interest at 6%. Interest is payable in full at maturity on July 31, 2025. What amount should River Valley Inc. report as interest payable at December 31, 2024? a. $36,000 b. $24,000 c. $20,000 d. $12,000