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On September 1, 2012, Lowe Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 12%, and payable in three equal annual principal payments of $300,000. 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, Lowe should record accrued interest payable of:

A) $36,000.

B) $22,000.

C) $24,000.

D) $33,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M970869

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