On October 1,2013,you Borrow $200,000 at 6% Interest and Record

question 4

Multiple Choice

On October 1,2013,you borrow $200,000 at 6% interest and record the promissory note.In April and again in October of the following year,you are required to pay half the annual interest to your creditor.On December 31,2013,your adjusting journal entry for the quarter should:

• A)debit Interest Expense for $3,000 and credit Interest Payable for $3,000.
• B)debit Interest Payable for $3,000 and credit Interest Expense for $3,000.
• C)debit Interest Expense for $6,000 and credit Cash for $6,000.
• D)debit Interest Expense for $6,000 and credit Interest Payable for $6,000.

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Definitions:

Zygomatic Process

A bony projection of the temporal bone that articulates with the zygoma (cheekbone) to form part of the cheek structure.

Temporal Bone

A bone of the skull, situated at the sides and base of the cranium, involved in the protection of the inner ear.

Temporal Process

A projection on the zygomatic bone that helps form the zygomatic arch, connecting the zygomatic bone to the temporal bone of the skull.