The amount that Course Co. should report as a liability for accrued interest on its December 31, 2021 balance sheet is $240.
<h3>What is accrued interest?</h3>
Accrued interest is an accounting expression that shows a liability for interest payment has been incurred for a loan but the payment has not yet been made.
For Course Co., it incurs accrued interest of $240 every quarter for the three-year note payable. Usually, the accrued interest is paid at the beginning of the next quarter.
<h3>Data and Calculations:</h3>
3-year note payable = $16,000
Rate of interest = 6% per year
Date of loan = May 1, 2020
Interest payment = quarterly or 4 times annually
Interest per quarter = $240 ($16,000 x 6% x 1/4).
Thus, the accrued interest on Course Co.'s December 31, 2021 balance sheet is $240.
Learn more about accrued interest at brainly.com/question/1542335
