On December 1,Milton Company Borrowed $300,000,at 8% Annual Interest,from the Tennessee

question 94

Multiple Choice

On December 1,Milton Company borrowed $300,000,at 8% annual interest,from the Tennessee National Bank.Interest is paid when the loan matures one year from the issue date.What is the adjusting entry for accruing interest that Milton would need to make on December 31,the calendar year-end?

• A)debit Interest Payable,$2,000;credit Interest Expense,$2,000.
• B)debit Interest Expense,$2,000;credit Interest Payable,$2,000.
• C)debit Interest Expense,$2,000;credit Cash,$2,000.
• D)debit Interest Expense,$4,000;credit Interest Payable,$4,000.
• E)debit Interest Expense,$24,000;credit Interest Payable,$24,000.

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Definitions:

Actin Filaments

Protein filaments in the cytoskeleton of eukaryotic cells, playing a key role in cell movement, shape, and division.

Animal Cells

Eukaryotic cells characterized by the absence of a cell wall, presence of membrane-bound organelles, and the ability to move at some point in their life cycle.

Asters

Star-shaped structures formed around chromosomes during cell division in plant and animal cells, assisting in the equal segregation of chromosomes to daughter cells.

Centrosomes

Organelles found in animal cells that serve as the main microtubule organizing centers and play crucial roles in cell division.