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:

Folding

The bending of rock layers due to stress in the Earth's crust, often resulting in wave-like structures known as anticlines and synclines.

Banded Rock

Rock that displays layers or bands of different colors or textures, often resulting from varying mineral compositions or sediment deposition.

Coarse Crystals

Large, visible crystals often found in igneous rocks, indicating slow cooling of magma.

Foliation

Foliation is the repetitive layering in metamorphic rocks, caused by the reorientation of minerals under high pressure and temperature conditions.