On October 1, Sam's Painting Service Borrows $100,000 from National

question 300

Multiple Choice

On October 1, Sam's Painting Service borrows $100,000 from National Bank on a 3-month, $100,000, 4% note. What entry must Sam's Painting Service make on December 31 before financial statements are prepared?

• A) Interest Payable 1,000 Interest Expense 1,000
• B) Interest Expense 4,000 Interest Payable 4,000
• C) Interest Expense 1,000 Interest Payable 1,000
• D) Interest Expense 1,000 Notes Payable 1,000

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Definitions:

Echolalia

The repetition of phrases or words typically practiced by individuals with autism or other communication disorders.

Morphemes

The smallest grammatical units in a language that convey meaning, such as prefixes, root words, and suffixes.

Mental Abilities

The capacity to process information, acquire knowledge, and apply reasoning and problem-solving skills.

Babbling

The production of repetitive syllables by infants, an early stage in language acquisition.