Vantage services issued

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On March 1, 2015, Vantage Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. Each yearly instalment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. On March 1, 2016, ________.

a. Vantage must accrue $5,000 of Interest Expense

b. Vantage must accrue for the coming $5,000 as current portion of principal payment

c. Vantage must pay out $750 of Interest Expense to the note holder

d. Vantage will receive $5,000 as an instalment payment

Reference no: EM13825319

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