A Business Makes a Payment of $1,200 on a Note

question 120

Multiple Choice

A business makes a payment of $1,200 on a note payable,consisting of a $200 interest payment and a $1,000 principal payment.Which of the following journal entries would be recorded?

• A) Cash is credited for $1,000; Interest expense is credited for $200; and Notes payable is debited for $1,200.
• B) Notes payable is credited for $1,000; Cash is credited for $200; and Interest expense is debited for $1,200.
• C) Cash is credited for $1,200; Notes payable is debited for $1,000; and Interest expense is debited for $200.
• D) Notes payable is credited for $1,200; Cash is debited for $1,000; and Interest expense is debited for $200.

Interpret volume variance and its effects on cost management.

Calculate fixed and variable overhead rate variances.

Determine the predetermined overhead rate based on various factors.

Analyze the efficiency variance for variable overhead costs.

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Definitions:

Nodes of Ranvier

Gaps in the myelin sheath of nerve fibers, which facilitate the rapid conduction of nerve impulses along the neuron.

Myelin Sheath

The myelin sheath is a protective covering made of fatty substances that surrounds the axons of many neurons, facilitating the rapid transmission of neural impulses.

Synapses

The junctions between neurons through which they communicate with each other using chemical or electrical signals.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for action and stress by accelerating the heart rate, widening the airways, and other responses.