Notes Payable Video Lessons

Concept

# Problem: Your company borrowed $50,000 on September 30 by issuing a 6-month short-term note payable that bears simple interest of 12%. On December 31, the end of the accounting period, the required adjusting entry related to the note will include a debit to Interest Expense and a credit to Interest Payable for the accrued amount of: a.$1,500 b. $6,000 c.$3,000 d. $2,000 ###### FREE Expert Solution ###### Problem Details Your company borrowed$50,000 on September 30 by issuing a 6-month short-term note payable that bears simple interest of 12%. On December 31, the end of the accounting period, the required adjusting entry related to the note will include a debit to Interest Expense and a credit to Interest Payable for the accrued amount of:

a. $1,500 b.$6,000

c. $3,000 d.$2,000