General Stores Borrowed $50 000 at 6% Interest on a Long-Term

Multiple Choice

General Stores borrowed $50 000 at 6% interest on a long-term loan payable on 31 August.At 31 December,interest plus $10 000 of the principal are payable within one year.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 $600
B) Interest payable $1 000
C) Interest payable $3 000
D) Interest payable $2 000