Pegasus Corp

question 80

Multiple Choice

Pegasus Corp. signed a three-month, 10% note on November 1, 2019 for the purchase of $246,000 of inventory. If Pegasus makes adjusting entries only at the end of the year, the entry made at January 31, 2020 will include a ________. (Do not round any intermediary calculations. Round your final answer to the nearest dollar.)

• A) debit to Note Payable for $246,000
• B) debit to Interest Expense for $4,100
• C) credit to Note Payable for $246,000
• D) debit to Interest Expense for $6,150

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Definitions:

Million Years

A unit of time used in geology, paleontology, and astronomy, equivalent to 1,000,000 years, often used to date events or processes on a geological time scale.

Chimpanzees

A species of great apes known for their intelligence and complex social behaviors, closely related to humans and sharing approximately 98% of our genetic DNA.

Closely Related

Closely related refers to entities that share a significant amount of common characteristics or genetic material, often leading to similarities in form, function, or behavior.

Chimpanzees

Highly intelligent primates, closely related to humans, known for their complex social behaviors and use of tools, inhabiting forests and savannas of Africa.