On December 1, 2010, a Company Loaned a New Employee

question 11

Multiple Choice

On December 1, 2010, a company loaned a new employee $20,000 to assist with her relocation expenses. The employee signed a 6-month note, with interest of 9%. The company prepares year-end financial statements at December 31. What is the required adjusting entry at December 31 as a result of this note transaction?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Consciousness

The condition in which an individual is conscious of and can reflect upon their own being, senses, mental activities, environment, and life events.

Maslow

A leading figure in psychology, Abraham Maslow was an American psychologist famous for formulating the hierarchy of needs theory, which asserts that psychological health stems from the sequential fulfillment of inherent human needs, the ultimate of which is self-actualization.

Personal Concerns

Issues or matters that hold significant importance or relevance to an individual's life and wellbeing.

Conscious Feelings

Emotions and sensations that are within an individual's immediate awareness.