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:

Delivery Truck

A vehicle used by businesses primarily for transporting goods to customers or between locations.

Gain or Loss

The financial result calculated as the difference between sale proceeds and the original cost of an asset.

Fully Depreciated

An asset's book value is reduced to zero, through depreciation, over its useful life, reflecting that it has no remaining unallocated cost.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, reducing its book value.