Contributor Enterprise Borrowed $2,400 on February 1,2012 $\begin{array}{lll}\text { } & \mathrm{Dr.}& \mathrm{Cr.}\\{\text { Notes Payable Expense }} & 2,400 & \\\text {Cash } & & 2,400 & \\\end{array}$

question 103

Multiple Choice

Contributor Enterprise borrowed $2,400 on February 1,2012.All interest has been paid and properly recorded for separately.On March 31,2012,the company repaid the loan.Which of the following is the journal entry to be made at the time of the loan repayment?

• A)\(\begin{array}{lll}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• {\text { Notes Payable Expense }} & 2,400 & \\
• \text {Cash } & & 2,400 & \\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Notes Payable } & 2,400& \\
• \quad \text { Cash } & & 2,400\\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Cash } & 2,400 & \\
• \quad \text { Notes Payable Expense } & & 2,400\\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Cash } & 2,400 & \\
• \quad \text { Notes Payable } & & 2,400\\
• \end{array}\)
• E)\(\begin{array}{lccc}
• \text { } & \mathrm{Dr.}& \mathrm{Cr.}\\
• \text { Cash } & 2,400 & \\
• \quad \text { Notes Receivable } & & 2,400\\
• \end{array}\)

---

Definitions:

Proportion

A statistical measure that reflects the fraction or percentage of the total number of items or cases that fall within a certain category or exhibit a particular attribute.

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sample Mean

The average value of a sample subset of a larger population, used as an estimate of the population mean.