Use the Following Information to Answer Questions

question 55

Multiple Choice

Use the following information to answer questions
Mars Company signed a six-month note payable for $20,000 on December 1, 2010 with an interest rate of 6%.The first payment of $3,391.91 is due on January 1, 2011.
-What would the journal entry for December 31, 2010 be?

• A)dr.interest expense $100, dr.note payable $ 3,291.91, cr.Cash $ 3,391.91
• B)dr.interest expense $600, dr.note payable $ 2,791.91, cr.Cash $ 3,391,91
• C)dr.interest expense $100, cr.Interest payable $ 100
• D)dr.interest expense $600, cr.Interest payable $ 600

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Definitions:

Hospital Administrator

A professional responsible for the management, coordination, and direction of health care and hospital services.

Logic

A system of reasoning or a framework for rational thought to assess the validity of statements or arguments.

Precise Wording

The use of clear and exact language to communicate specific details effectively, minimizing misunderstandings.

Future-Oriented

Focused on or planning for the upcoming trends, innovations, or occurrences rather than the current or past situations.