Hello,

im confused on how to go about this question.

1.On Sept 1, 2012, King Co. issued a note payable to National Bank in the amount of $900,000, bearing interest at 12%, and payable in three equal annual principal payments of $300,000 (interest is paid annually as well).On this date, the bank's prime rate was 11%.The first payment for interest and principal was made on Sept 1, 2013.At Dec 31, 2013, King should record accrued interest payable of