On November 1,2012,EZ Products Borrowed $48,000 on a 5%,10-Year Note

question 47

Multiple Choice

On November 1,2012,EZ Products borrowed $48,000 on a 5%,10-year note with annual installment payments of $4,800 plus interest due on November 1 of each succeeding year.
-How much interest expense should be accrued at December 31,2012 for the period of November 1 through year-end?

• A) $1,200
• B) $2,400
• C) $400
• D) $200

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Definitions:

Medicare

A federal program in the United States that provides health insurance to people over the age of 65, as well as to younger individuals with certain disabilities.

Medicaid

A joint federal and state program in the USA that helps with medical costs for some people with limited income and resources.

Criminal Law

The branch of law that deals with crimes and their prosecution.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger individuals with disabilities.