A Business Making a Monthly Mortgage Payment That Included $1,200

question 9

Multiple Choice

A business making a monthly mortgage payment that included $1,200 principal and $300 interest should be recorded as:

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Mortgage payable } & 1,200 & \\
• \hline \text { Interest payable } & 300 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Mortgage payable } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,500 & \\
• \hline \text { Mortgage payable } & & 1,500 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Mortgage payable } & 1,200 & \\
• \hline \text { Interest expense } & 300 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\)

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Definitions:

Cyber-Technique

Methods or approaches that utilize digital technology and cybernetics for achieving specific objectives or solving problems.

Serious Intent

A legal concept indicating that a party has a genuine and earnest intention to enter into a binding contract.

Angry

A strong feeling of displeasure or hostility, often resulting from frustration, injustice, or threat.

Requirement Contract

A requirement contract is a legal agreement in which one party agrees to purchase all its needs for a specific good or service from the other party.