On September 30, World Co. borrowed $1,000,000 on a 9% note payable. World paid the first of four quarterly payments of $264,200 when due on December 30. In its December 31, balance sheet, what amount should World report as note payable?

a) $735,800
b) $750,000
c) $758,300
d) $825,800

c)$758,300

Explanation:

when you borrow money you have to pay interest which means that the borrower will end up paying more than what they borrowerworld co will end up paying $1,000,000 plus interest of 9%paying the amount of the loan owed reduces your balance but interest increases the balance of your loan

the interest will equal $22500 calculated   as:

   $1000000×9%   =$90,000 (total interest for the period)however the loan was taken in September 30 and paid 30 December 30(3 months)therefore interest up to 30 December $1,000,000×9%׳/₁₂=$22500

FINAL ANSWER:        

   $1,000,000-$264200+ $22500(interest for 3 months calculated above)    =$758300  to the note repayable    

This app is rigge im si mad