Bluing Corporation Issued a One-Year 10% $400,000 Note on April

question 125

Multiple Choice

Bluing Corporation issued a one-year 10% $400,000 note on April 30, 2022.Assuming that the company only accrues interest at year-end, the interest expense to be recorded at December 31, 2022 is:

• A)$36,000.
• B)$27,000.
• C)$26,667.
• D)$40,000.

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Definitions:

Special Endorsement

A form of endorsement on a negotiable instrument, such as a check, whereby the endorser specifies the party to whom the instrument is to be payable.

Named Endorsee

An individual or entity specifically named in a negotiable instrument, such as a check, as the party to whom the instrument is endorsed or assigned.

Endorser's Signature

The signature of the person who endorses a document, often found on checks or financial instruments, indicating their approval or transfer of rights.

Blank Endorsement

A payee’s or last endorsee’s signature on a negotiable instrument.