Question

On the first day of​ January, Builders, Inc. borrowed $ 3 comma 000 on a oneminusyear note payable bearing interest at 5​% per year. The note specifies that principal and interest must be paid in full at the end of the oneminusyear period. On June​ 30, the adjusted trial balance will show Interest Payable of​ ________.

Answer 1

Interest expense 75 debit

Interest payable 75 credit

Step-by-step explanation:

principal x rate x time = interest

always rate and time should be express in the same metric. Because, the rate is annual we express time as a portion of year.

notes principal: 3,000 dollars

interest rate: 5% annual

months from Jan 1st to June 30th = 6 months

$3,000 x 5% x 6/12 = 75 dollars