On September 1 Year3 Boxel borrowed 100000 on a 6month 6 ann

On September 1 Year3, Boxel borrowed $100,000 on a 6-month, 6% annual interest note payable. Interest and principal are to be paid at maturity. Assuming this is Boxel\'s only debt during the year, how much interest payable will Boxel report on the balance sheet as of December 31,Year3?

Select one: a. $4,000 b. $3,000 c. $1,000 d. $2,000 e. $6,000

Solution

Calculate interest payable :

Interest payable = 100000*6%*4/12 = 2000

So answer is d) $2000