On 31 October, General Stores Signed a Six- Month, 9

Multiple Choice

On 31 October, General Stores signed a six- month, 9% note payable to purchase inventory costing $10 000. The note requires payment of principal and interest at maturity. What is the account name and amount of a current liability that will be reported on the balance sheet as at 31 December?

A) Interest Payable $300
B) Principal Payable $6 667
C) Interest Payable $900
D) Interest Payable $150