Unquiet Hands, Inc $\begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest payable } \\\hline \mathrm{Cr} . & \text { Cash } \\\hline\end{array}$

question 9

Multiple Choice

Unquiet Hands, Inc.borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020.Which of the following journal entries should Unquiet Hands, Inc.use to record the payment of interest on September 30, 2020?

• A) \(\begin{array}{|l|l|}
• \hline \text { Dr. } & \text { Interest payable } \\
• \hline \mathrm{Cr} . & \text { Cash } \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|c|c|}
• \hline \text { Dr. } & \text { Interest receivable } \\
• \hline \mathrm{Cr} . & \text { Interest payable } \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|l|}
• \hline \text { Dr. } & \text { Interest expense } \\
• \hline \mathrm{Cr} . & \text { Interest payable } \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|l|}
• \hline \text { Dr. } & \text { Interest payable } \\
• \hline \mathrm{Cr} . & \text { Interest expense } \\
• \hline
• \end{array}\)

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Definitions:

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, with most observations clustering around the center and fewer observations the further away they are from the mean.

Observational Studies

A study where the researcher observes and records behavior without manipulating the environment or conditions.

Experiments

A procedure undertaken to test a hypothesis, typically involving the manipulation of variables to observe the effect on some behavior or condition.

Sample

A subset of individuals or observations drawn from a population used for statistical analysis, intended to represent the population from which it is drawn.