Question

On September 1, 2018, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity. The total amount of the current liability (including interest payable) for this loan that appears in Select Company's balance sheet at December 31, 2018, is:

Answer 1

Answer:Total amount in current liability in the balance sheet = $ 624,000

Step-by-step explanation:

Interest = Principal x time x rate

$600,000 X 12% x 4/12 ( september - december )

=$24,000

Total amount in current liability in the balance sheet at December 31,2018

Principal + interest = $600,000+ 24,000= $ 624,000