On the First Day of January,Harris,Inc

Multiple Choice

On the first day of January,Harris,Inc.borrowed $2,000 on a one-year note payable bearing interest at 7% 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) $70 credit
B) $70 debit
C) $140 credit
D) $140 debit