On August 15, 2022, Kinney Industries Signs a $200,000, 8

question 81

Multiple Choice

On August 15, 2022, Kinney Industries signs a $200,000, 8%, twelve-month note payable.Which of the following entries correctly records the accrued interest on December 31, 2022?

• A)Dr Interest Expense $6,000
• Cr Interest Payable $6,000
• B)Dr Interest Expense $5,333.33
• Cr Interest Payable $5,333.33
• C)Dr Interest Expense $16,000
• Cr Interest Payable $16,000
• D)Dr Interest Expense $10,000
• Cr Interest Payable $10,000

---

Definitions:

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition, enacted in 1890.

Monopoly

An exclusive control over the supply of a product or service in a particular market, often eliminating or restricting competition.

ATC Schedule

A table or graph that shows the average total costs for producing different levels of output.

Consumer Surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay.