accounting gurus help me!!!! I am screwed on this quiz?

Question

#
On July 1, 2009, Allen Company signed a $100,000, one-year, 6 percent note payable. At due date, June 30, 2010, the principal and interest will be paid. Interest expense should be reported on the income statement (for the year ended December 31, 2009) as
(2 points)

a.
$6,000.
b.
$3,000.
c.
$1,500.
d.
$1,200.
e.
None of the above is correct.

Answer 1

The answer is 3,000.
While not paid out immediately, the interest should be expensed as it is accrued. As half of the term of the note has expired by the end of the fiscal period, half of the total interest of the note should be realized.

Answer 2

Depending on your accounting methods, I'm thinking that the answer is "zero". It is a liability but not yet an expense, since you haven't paid it...

I'll delete my answer if someone else has a better answer.

Answer 3

i still haven't overcome my trauma yet. i need more time to heal myself.