A $20,000,3-Month,8% Note Payable Was Issued on November 1,2015

question 55

Multiple Choice

A $20,000,3-month,8% note payable was issued on November 1,2015.Which of the following would be included in the journal entry required on the note's maturity date?

• A) A credit to Note payable for $20,400
• B) A credit to Cash for $10,000
• C) A debit to Interest expense for $133
• D) A debit to Interest payable for $133

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Definitions:

Units Produced

The total number of completed products that come out of a manufacturing process during a specific period.

Contribution Format Income Statement

An income statement layout that separates variable costs from fixed costs, showing the contribution margin and highlighting how sales revenue covers variable costs and fixed costs to determine net income.

Break-even Point

This refers to the level of production or sales volume at which total revenues match total expenses, resulting in no net profit or loss.

Net Operating Income

A financial metric indicating the profitability of a business's core operations, calculated by subtracting operating expenses from gross income.