Yowell Company Began Operations on January 1, Year 1

question 29

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000 2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell'snotes payable balance at the end of Year 1?

• A) $0
• B) $25,000
• C) ($15,000)
• D) $10,000

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Definitions:

Negative Reinforcement

A method of increasing the probability of a behavior by removing or avoiding a negative condition or stimulus following the desired behavior.

Extinction

In psychology, the diminishing of a conditioned response, occurring when the reinforcement no longer follows the conditioned stimulus; in biology, the end or dying out of a species.

Emotional Reaction

The affective response an individual exhibits in reaction to an external or internal stimulus.

Punishment

A consequence designed to reduce or eliminate undesirable behavior by presenting an adverse outcome following that behavior.