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On the first day of​ January, Builders Company borrowed​ $1,000 on a onedashyear note payable bearing interest at​ 3% per year. The note specifies that principal and interest must be paid in full at the end of the onedashyear period. On June​ 30, the adjusted trial balance will show Interest Payable of​ ________.

Respuesta :

Answer:

$15

Explanation:

Given that,

Amount borrowed = $1,000

Interest rate = 3 percent

Time period ⇒ January 1 to June 30 = 6 months

On June​ 30,

Adjusted trial balance will show Interest Payable:

= Amount of money borrowed × Rate of interest × Time period

= $1,000 × 3 percent × (6 months ÷ 12 months)

= $1,000 × 0.03 × 0.5

= $15

This amount of accrued interest upto 30th June will be credited by $40 and has a credit balance of interest payable.

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