On January 1, 2015, Bratios Company Purchased Equipment and Signed

question 14

Multiple Choice

On January 1, 2015, Bratios Company purchased equipment and signed a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. On January 1, 2016, the journal entry to record the first installment payment will include a:

• A)debit to Mortgage Payable for $21,139.
• B)debit to Interest Expense for $12,000.
• C)credit to Cash for $9,139.
• D)credit to Mortgage Payable for $80,000.

Gain insight into the updated provisions of Article 3 regarding negotiation and indorsement.

Learn about the rights and liabilities of holders in due course, including the protections against claims and defenses.

Differentiate between order paper, bearer paper, and how each is negotiated under UCC rules.

Comprehend the significance of acting in good faith and providing value when dealing with negotiable instruments.