On April 12,Hong Company Agrees to Accept a 60-Day,10%,$4,500 Note

question 90

Multiple Choice

On April 12,Hong Company agrees to accept a 60-day,10%,$4,500 note from Indigo Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?

• A)Debit Notes Payable $4,500;debit Interest Expense $75;credit Cash $4,575.
• B)Debit Notes Payable $4,500;credit Interest Expense $75,credit Cash $4,425.
• C)Debit Cash $4,575;credit Interest Revenue $75;credit Notes Payable $4,500.
• D)Debit Notes Payable $4,500;debit Interest Expense $112;credit Cash $4,612.
• E)Debit Cash $4,575;credit Interest Revenue $75;credit Notes Receivable $4,500.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Expected Returns

The predicted average return of an investment portfolio over a specified period.

Corresponding Weights

The proportions or percentages allocated to different assets in a portfolio, determining the impact of each asset's performance on the overall portfolio return.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatterplot.