Thomas Company decided to borrow $31,900 on March 1st, 2016. Thomas signed a 2-year 5% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2017? a. $3,190 b. $1,595 c. $266 d. $957

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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Please provide answer this general accounting question

Thomas Company decided to borrow $31,900
on March 1st, 2016. Thomas signed a 2-year
5% interest-bearing note.
What is the adjustment amount to accrue
interest on December 31, 2017?
a. $3,190
b. $1,595
c. $266
d. $957
Transcribed Image Text:Thomas Company decided to borrow $31,900 on March 1st, 2016. Thomas signed a 2-year 5% interest-bearing note. What is the adjustment amount to accrue interest on December 31, 2017? a. $3,190 b. $1,595 c. $266 d. $957
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