On November 1, 2014, Chancellor Co

question 50

Multiple Choice

On November 1, 2014, Chancellor Co.borrowed $80,000 from State Bank and signed a 12%, six-month note payable, all due at maturity.The interest on this loan is stated separately.At December 31, 2014, the adjusting entry for this note includes a:

• A)Debit to Interest Expense for $3,200.
• B)Credit to Notes Payable for $1,600.
• C)Credit to Cash for $4,800.
• D)Credit to Interest Payable for $1,600.

---

Definitions:

Consecutive Odd Integers

Integers that follow one after another in order and are odd, each differing by two from the next (e.g., 1, 3, 5, ...).

Sum

The result of adding two or more numbers or quantities together.

Algebraic Model

A mathematical model that uses algebraic expressions to represent real-world situations.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.