Travis County Bank Agrees to Lend Brickyard Corporation $200,000 on January

question 260

Multiple Choice

Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1.Brickyard signs a $200,000,4%,9-month note.Interest is due at maturity on September 30.The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. What journal entry will Brickyard make when paying the interest at maturity?

• A)Debit Notes Payable and credit Cash for $206,000.
• B)Debit Interest Expense for $4,000,and credit Cash for $4,000.
• C)Debit Interest Expense for $6,000 and Cash for $206,000.
• D)Debit Interest Payable for $4,000,debit Interest Expense for $2,000,and credit Cash for $6,000.

---

Definitions:

Nominal

A scale of measurement used to label variables without a quantitative value, categorizing data without a natural order or ranking.

Research Hypotheses

Statements made by researchers that predict a relationship between variables, to be tested by scientific research.

Samples and Populations

Concepts in statistics where a sample represents a subset of a larger group (population) from which it is drawn and is used to infer properties about the population.

Dependent Variable

The variable in an experiment or study that is expected to change in response to manipulations of the independent variable, representing the effect or outcome.