Blossom Company obtains $32,000 in cash by signing a 7%, 6-month, $32,000 note payable to First Bank on July 1. Blossom's fiscal
year ends on September 30. What information should be reported for the note payable in the annual financial statements?
In the balance sheet, Notes Payable of $
and Interest Payable of $
should be
reported as
In the income statement, Interest Expense of $
should be reported under