On 1 November 2015, Archangel Services Issued $200 000 of 10-

question 50

Multiple Choice

On 1 November 2015, Archangel Services issued $200 000 of 10- year debentures with a stated rate of 3%. The debentures were sold at par, and make half- yearly payments on 30 April and 31 October. At 31 December 2015, Archangel made an adjusting entry to accrue interest at year- end. How much interest expense will be recorded at 31 December 2015?

• A)$500
• B)$1 000
• C)$1 500
• D)$6 000

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Definitions:

Endorphins

Natural pain-relieving peptides produced by the brain that also enhance feelings of pleasure.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and slowing the heart rate, facilitating a state of calm and relaxation.

Somatic Nervous System

The part of the peripheral nervous system that controls voluntary movements of the body and transmits sensory information.

Racing Heartbeat

A rapid increase in heart rate, often due to excitement, stress, or physical exertion.