Comet Corporation's Liability Account Balances at June 30, 2011, Included

question 34

Multiple Choice

Comet Corporation's liability account balances at June 30, 2011, included a 10 percent note payable. The note is dated October 1, 2009, and carried an original principal amount of $600,000. The note is payable in three equal annual payments of $200,000 plus interest. The first interest and principal payment was made on October 1, 2010. In Comet's June 30, 2011, balance sheet, what amount should be reported as Interest Payable for this note?

• A) $10,000
• B) $15,000
• C) $30,000
• D) $45,000

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