On August 1, Amy Company Borrowed $40,000 from Another Company

question 122

Multiple Choice

On August 1, Amy Company borrowed $40,000 from another company on a 6%, one-year note. The journal entry on December 31 would include which of the following?

• A)A debit to Notes Payable for $40,000.
• B)A debit to Interest Receivable for $1,000.
• C)A credit to Interest Payable for $2,400.
• D)A debit to Interest Expense for $1,000.

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Definitions:

Common Ingroup Identity

A psychological model suggesting that emphasizing shared identities within diverse groups can reduce intergroup bias and foster a sense of unity and cooperation.

Disidentification

The process through which an individual consciously chooses not to associate themselves with certain groups or ideas.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over others.

Intergroup Harmony

The peaceful and cooperative interaction between different groups, aiming to reduce conflict and promote mutual understanding and respect.