Thayer Company Purchased a Building on January 2 by Signing

question 119

Multiple Choice

Thayer Company purchased a building on January 2 by signing a long-term $2,520,000 mortgage with monthly payments of $23,100. The mortgage carries an interest rate of 10 percent. The entry to record the mortgage will include a

• A) debit to the Cash account for $2,520,000.
• B) credit to the Cash account for $2,520,000.
• C) debit to the Mortgage Payable account for $2,520,000.
• D) credit to the Mortgage Payable account for $2,520,000.

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Definitions:

Punishable

Refers to actions or behaviours subject to legal sanctions or penalties.

Shareholders' Election

The process by which the shareholders of a corporation vote to choose members of the board of directors or make decisions on other important matters.

Manipulate

To control or influence something or someone in a deceitful or unethical way.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.