Use the Following Information for Questions
London Bank and Trust

question 38

Multiple Choice

Use the following information for questions
London Bank and Trust agrees to lend the Beckham Company £2,000,000 on January 1, 2010.Beckham Company signs a ₤2,000,000, 6%, 9-month note.
-Assuming that monthly accruals are not made, what adjusting entry is required if Beckham Company prepares financial statements on June 30?

• A)\(\begin{array} { l } \text { Interest Expense }&60,000 \\
• \text {Interest Payable. }&&60,000 \\\end{array}\)
• B) \(\begin{array} { l }\text { Interest Expense }&60,000 \\
• \text { Cash}&&60,000 \\\end{array}\)
• C) \(\begin{array} { l }\text { Interest Expense }&80,000 \\
• \text {Cash }&&80,000 \\\end{array}\)
• D) \(\begin{array} { l }\text { Interest Payable}&80,000 \\
• \text { Interest Expense}& &80,000 \\
• \end{array}\)

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Definitions:

Medical Assistant

A healthcare professional who performs administrative and clinical tasks in support of doctors and other health professionals in medical offices, clinics, and hospitals.

OSHA

Known as the Occupational Safety and Health Administration, this agency of the U.S. government is in charge of promoting safety and health in the workplace.

Category I Tasks

Tasks or activities classified as highest priority or urgency, often indicating critical processes that require immediate attention or action in a given context.

Exposure

The state of being subject to possibly harmful conditions or substances, such as chemicals, noise, or unhealthy environments.