On this date the banks prime rate was 11. the first payment, Ask an Expert

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On September 1, 2012, Henrietta Co. issued a note payable to National Bank in the amount of $3,600,000, bearing interest at 12%, and payable in three equal annual principal payments of $1,200,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2013. At December 31, 2013, Henrietta should record accrued interest payable of:

a. $144,000.

b. $132,000.

c. $96,000.

d. $72,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M939633

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