On October 1,2015,Attra Inc

question 190

Multiple Choice

On October 1,2015,Attra Inc.borrows $200,000 on a three-year note that requires the company to pay 6% interest on March 31 and September 30.On December 31,2015,the adjusting entry to accrue interest on the note should debit:

• A) Interest Expense and credit Interest Payable for $3,000.
• B) Interest Payable and credit Interest Expense for $3,000.
• C) Interest Expense and credit Cash for $6,000.
• D) Interest Expense and credit Interest Payable for $6,000.

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Definitions:

Jail Diversion

An arrangement in which mentally disturbed criminal defendants are treated for their disorders on an outpatient basis. That is, they are diverted from jail to the community for mental health care.

Mental Health Care

Professional and supportive services aimed at improving and maintaining mental health and preventing mental illness.

Minor Charges

Legal accusations that are less serious compared to felony charges, often resulting in lesser penalties.

Civilly Committed

The legal process by which individuals with severe mental illnesses are ordered by a court to receive treatment, often in a secure facility.