Raxon Company Borrowed $50,000 from the Bank Signing a 6

question 74

Multiple Choice

Raxon Company borrowed $50,000 from the bank signing a 6%, 3-month note on September 1.Principal and interest are payable to the bank on December 1.If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be:

• A)debit Interest Expense, $3,000; credit Interest Payable, $3,000.
• B)debit Interest Expense, $250; credit Interest Payable, $250.
• C)debit Note Payable, $3,000; credit Cash, $3,000.
• D)debit Cash, $750; credit Interest Payable, $750.

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Definitions:

Coverts

Individuals or actions involving concealed, secret, or disguised behaviors, often intended to avoid detection.

Resistant

The quality of being opposed to or defending against something, especially change or adverse conditions.

Strongly Identify

The degree to which an individual aligns themselves with and feels a part of a particular group, cause, or belief.

Resist Change

The reluctance or refusal to accept new ideas, behaviors, or practices, often due to discomfort or fear of the unknown.