On November 1,2012,EZ Products Borrowed $48,000 on a 5%,10-Year Note $$\begin{array} { | l | r | r | } \hline \text { Interest expense } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$$

question 152

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.
-Which of the following journal entries would be needed at December 31,2012 to accrue interest from November 1 through year-end?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Interest expense } & 400 & \\
• \hline \text { Cash } & & 400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Interest expense } & 400 & \\
• \hline \text { Interest payable } & & 400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Interest expense } & 400 & \\
• \hline \text { Accounts payable } & & 400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 400 & \\
• \hline \text { Interest expense } & & 400 \\
• \hline
• \end{array}\]

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Definitions:

Prescribed Set

A specific collection of elements, such as numbers, terms, or symbols, that is defined or allocated for a particular purpose.

Assess for Lethality

A process in mental health evaluation aimed at determining the risk of a person causing harm to themselves or others.

Psychosocial and Environmental Factors

Aspects of individuals’ social interactions and environment that affect their mental health and behavior.

Clinical Diagnosis

The process of identifying a disease or condition by its signs, symptoms, and from the results of various diagnostic procedures.