On October 1, 2025, Halley Co. issued a note payable to Fide…
On October 1, 2025, Halley Co. issued a note payable to Fidelity Bank in the amount of $3,000,000, bearing interest at 8%, and payable in three equal annual principal payments of $1,000,000. On this date, the bank’s prime rate was 9%. The first payment for interest and principal was made on October 1, 2026. At December 31, 2026, Halley should record accrued interest payable of: