The note payable has been signed on July 1 for a period of 6 months. This is payable on December 31. As on 30th September, when the year ends
Work Step by Step
The note payable is due for payment after 3 months - so it is a current liability. · Interest is accrued for the period from July 01 to September 30 (3 months), amounting to 450 dollars. This Interest payable should also be shown as current liability.