On July 1,2013,Avery Services Issued a 4% Long-Term Note Payable

question 100

Multiple Choice

On July 1,2013,Avery Services issued a 4% long-term note payable for $10,000.It is payable over a 5-year term in $2,000 principal installments on July 1 of each year.Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period.
-What happens on December 31,2013 before statements are prepared?

• A) Avery must accrue $200 of interest expense.
• B) Avery must accrue for the coming $2,000 principal payment.
• C) Avery must pay out $200 of interest expense to the note holder.
• D) Avery does not need to take any actions.

---

Definitions:

Anorexia Nervosa

An eating disorder characterized by a low weight, fear of gaining weight, and a strong desire to be thin, resulting in food restriction.

Bulimia

An eating disorder characterized by cycles of binge eating followed by purging, through methods like vomiting or misuse of laxatives, to prevent weight gain.

Young Women

Female individuals who are in their late adolescence to early adulthood.

Mood Disorders

A category of mental disorders that primarily affect a person's emotional state, leading to periods of extreme happiness or sadness.