A Bank Loaned Darden Company $10,000 on a 1-Year, 6

question 78

Multiple Choice

A bank loaned Darden Company $10,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry made by Darden to record receipt of the cash would include a

• A) a decrease in Notes Payable for $9,400.
• B) a decrease in Notes Payable for $10,600.
• C) an increase in Cash for $600.
• D) an increase in Cash for $9,400.

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Definitions:

Real Terms

Economic measures or financial figures adjusted for inflation, enabling comparison of quantities as if prices had not changed over time.

Minimum Wage

The lowest hourly, daily, or monthly wage that employers are legally allowed to pay workers, aimed at protecting worker welfare.

Price of Health Care

The cost associated with obtaining medical services, treatments, or products.

NADH

Nicotinamide adenine dinucleotide (NADH) is a coenzyme found in all living cells, involved in redox reactions and energy production through cellular respiration.