On the first day of January,Harris,Inc.borrowed $2,000 on a one-year note payable bearing interest at 7% per year.The note specifies that principal and interest must be paid in full at the end of the one-year period.On June 30,the adjusted trial balance will show Interest Payable of ________.
A)$70 credit
B)$70 debit
C)$140 credit
D)$140 debit

Question

Quizplus · Accepted Answer

Interest Payable = $2,000 × 7% × 6/12 = $70

On the First Day of January,Harris,Inc