On November 1, 2021, Weller Industries, Which Uses a Calendar

question 79

Multiple Choice

On November 1, 2021, Weller Industries, which uses a calendar year as its fiscal year, signs a $30,000, 7%, six-month note payable.Which of the following entries correctly records the payment of the note and entire interest on May 1, 2022?

• A)Dr Notes Payable $30,000
• Dr Interest Expense 700
• Dr Interest Payable 350
• Cr Cash $31,050
• B)Dr Notes Payable $32,100
• Cr Cash $32,100
• C)Dr Notes Payable $31,050
• Cr Cash $31,050
• D)Dr Notes Payable $30,000
• Dr Interest Expense 1,050
• Cr Cash $31,050

---

Definitions:

Breaking Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for some control over prices.

Monopolistic Competitors

Companies in a market where many sellers offer products that are similar but not identical, giving each some degree of market power.

Small Companies

Businesses with a smaller scale of operations, employee base, and market presence, often characterized by lower revenues than larger corporations.