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20 April, 04:30

On July 1, 2015, Allen Company signed a $100,000, one-year, 6 percent note payable. The principal and interest will be paid on June 30, 2016. How much interest expense should be reported on the income statement for the year ended December 31, 2015? a. $ 6,000b. $ 3,000c. $1,500d. $ 0

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  1. 20 April, 05:13
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    b. $ 3,000

    Explanation:

    Interest expense = $100,000*0,06*6/12

    =$3000

    Therefore, the interest expense that should be reported on the income statement for the year ended December 31, 2015 is $3000
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