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On September 1, 2020, Oriole Company issued a note payable to Fidelity Bank in the amount of $2709000, bearing interest at 9%, and payable in three equal annual principal payments of $903000. On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Oriole should record accrued interest payable of $90300. $81270. $54180. $180600.

Respuesta :

Answer: $54180

Explanation:

Since the first repayment on September 1, 2021 was $903000, the balance would be:

= $2709000 - $903000

= $1806000

We would then calculate the interest per anumn that will be gotten till september 1, 2021. This will be:

= $1806000 × 9%

= $1806000 × 0.09

= $162540

At December 31, 2021, Oriole should record accrued interest payable of:

= ($162540/12) × 4

= $54180

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