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

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Definitions:

Cloud Computing

The delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet to offer faster innovation, flexible resources, and economies of scale.

Ubiquitous

The condition of being everywhere at the same time, commonly used to describe technologies that have become an integral part of daily life.

IaaS

Infrastructure as a Service, a form of cloud computing that provides virtualized computing resources over the internet.

Technology Companies

Businesses that focus on the development, production, and marketing of electronics, software, computers, and other technological goods or services.