On the first day of January, Harris, Inc. borrowed $2,000 on a one-year note payable bearing interest at 7% 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) $70 credit
B) $70 debit
C) $140 credit
D) $140 debit
A .Interest Payable = $2,000 x 7% x 6/12 = $70
Business
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