Carlock Systems Received a 6-Month, 12% Note for $50,000 from a Customer

question 72

Multiple Choice

Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2013. The note is due on April 30, 2014. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2013 and 2014? 2013 2014

• A)$2,000 $1,000
• B)$1,000 $2,000
• C)$0 $6,000
• D)$1,000 $5,000

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Definitions:

WWII

World War II, a global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant battles, atrocities, and the Holocaust.

Annihilation

The complete destruction or obliteration of something, often used in contexts ranging from physics to theology.

Cremation

The reduction of a human body by means of heat or direct flame. The cremated remains are called cremains or ashes and weigh between three and nine pounds. Ashes is a very poor word to describe the cremated remains because they are actually processed bone fragments and calcium residue that have the appearance of crushed rock or pumice.

Technological Devices

Tools, machines, or equipment developed through technological means to perform specific functions or tasks.