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On the first day of January, Builders Company borrowed $3,000 on a one-year note payable bearing interest at 9% per year. The
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Answer #1

Answer:

  • The correct answer is Option C($135 credit).

Explanation:

Interest accrued upto June 30

= 3,000 * 9% * 6months /12months

= $ 135

$ 135

Interest accrued upto June 30 = $ 135 credit (Interest payable has credit balance).

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