On the First Day of January, Patricia Borrowed $2,000 on a One-Year

Multiple Choice

On the first day of January, Patricia borrowed $2,000 on a one-year note payable bearing interest at 4% per year. The note specifies that principal and interest must be paid in full at the end of the one-year period. On June 30, the adjusted trial balance will show Interest Payable of:

A) $40 credit.
B) $40 debit.
C) $80 credit.
D) $80 debit.