Given the Following Information from an Amortization Table for December

question 166

Multiple Choice

Given the following information from an amortization table for December 31, 2017, prepare the journal entry to record the accrual of interest at year end if the fiscal year of the company ends on September 30. Assume the last interest payment occurred on 6/30/2017, and the next interest payment on 12/31/2017. Round numbers to two decimal places. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } 6 \% \text { Cash } \\\text { Interest }\end{array} & \begin{array} { c } 5 \% \text { Effective } \\\text { Interest }\end{array} & \begin{array} { c } \text { Premium } \\\text { Amortization }\end{array} & \begin{array} { c } \text { Carrying } \\\text { Value }\end{array} \\\hline \$ 42,000 & \$ 35,333 & \$ 6,667 & \$ 700,000 \\\hline\end{array}$$

• A) Journal Entry \[\begin{array} { | l | l | r | l | }
• \hline & \text { Account } & \text { Debit } & \text { Credit } \\
• \hline \text { September 30 } & \text { Interest Expense } & 17,666.50 & \\
• \hline & \text { Premium on Bonds Payable } & 3,333.50 & \\
• \hline & \text { Interest Payable } & & 21,000.00 \\
• \hline
• \end{array}\]
• B) Journal Entry \[\begin{array} { | l | l | r | c | }
• \hline & \text { Account } & \text { Debit } & \text { Credit } \\
• \hline \text { September 30 } & \text { Interest Expense } & 17,666.50 & \\
• \hline & \text { Discount on Bonds Payable } & 3,333.50 & \\
• \hline & \text { Bonds Payable } & & 21,000.00 \\
• \hline
• \end{array}\]
• C) Journal Entry \[\begin{array} { | l | l | r | c | }
• \hline & \text { Account } & \text { Debit } & \text { Credit } \\
• \hline \text { September 30 } & \text { Interest Expense } & 17,666.50 & \\
• \hline & \text { Premium on Bonds Payable } & 3,333.50 & \\
• \hline & \text { Cash } & & 21,000.00 \\
• \hline
• \end{array}\]
• D) Journal Entry \[\begin{array} { | l | l | r | c | }
• \hline & \text { Account } & { \text { Debit } } & \text { Credit } \\
• \hline \text { September 30 } & \text { Interest Expense } & 17,666.50 & \\
• \hline & \text { Discount on Bonds Payable } & 3,333.50 & \\
• \hline & \text { Cash } & & 21,000.00 \\
• \hline
• \end{array}\]

Acknowledge the connection between brain structures and behavior or cognitive functions.

Understand the primary functions and structures of the brain.

Identify the specific roles of different brain regions in processing sensory information.

Recognize the impact of brain damage on various cognitive and physical functions.

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Definitions:

Economic Loss

A situation where total costs exceed total revenues, leading to a negative economic profit.

AVC

Average Variable Cost, an economic metric reflecting the variable costs (such as labor and materials) per unit of output.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, a critical factor in economic analysis of a company's efficiency.

Shut-down Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which it is more beneficial for a firm to cease production.