Collier Borrowed $175,000 on October 1 and Is Required to Pay

question 39

Multiple Choice

Collier borrowed $175,000 on October 1 and is required to pay $180,000 on March 1.What amount is the note payable recorded at on October 1 and how much interest is recognized from October 1 to December 31?

• A)$175,000 and $0.
• B)$175,000 and $3,000.
• C)$180,000 and $0.
• D)$175,000 and $5,000.

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Definitions:

Bantu

A large group of African languages and their speakers, originating from the Niger-Congo region and spreading across much of sub-Saharan Africa.

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The organized pattern of social relationships and social institutions that together compose society, influencing behaviors and relationships.

Neolithic

The New Stone Age; a prehistoric period beginning about 10,000 years ago in which peoples possessed stone-based technologies and depended on domesticated crops and/or animals for subsistence.

Division of Labor

The allocation of different tasks and responsibilities to different individuals or groups, typically to increase efficiency in production or services.