On the First Day of January,Builders Company Borrowed $1,000 on a One-Year

question 19

Multiple Choice

On the first day of January,Builders Company borrowed $1,000 on a one-year 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 one-year period.On June 30,the adjusted trial balance will show Interest Payable of ________.

• A) $15 credit
• B) $15 debit
• C) $30 credit
• D) $30 debit

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Definitions:

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Reimburses

Refers to the act of compensating someone for an expense they have incurred.

Shoes For Crews

A footwear company specializing in slip-resistant shoes, catering primarily to workers in industries where floor surfaces can be hazardous.

RFID Technologies

Systems that use radio-frequency identification for tracking and identifying tags attached to objects using electromagnetic fields.