Q 5.35: On September 1, 2015, Barclay Spa borrowed $500,000 to renovate the massage therapy area of the facility. The terms of the loan were 6% annually over 10 years. Determine how the interest would appear on Barclays pro-forma balance sheet at December 31, 2015. Interest Expense $12,0000 B : Interest Payable $12,000 C : Interest Expense $10,000 D : Interest Payable $10,000

• Interest Expense $12,0000

• B :

  Interest Payable $12,000

• C :

  Interest Expense $10,000

• D :

  Interest Payable $10,000