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:

Simplifying Assumptions

Basic assumptions made to make complex economic models more understandable and manageable by ignoring certain factors.

Mathematical Equations

Symbolic representations of relationships between variables or quantities, defined by mathematical operations.

Economic Hypothesis

A proposed explanation for economic phenomena that is testable and can be confirmed or refuted by observation and experimentation.

Economic Principle

A widely accepted generalization about the economic behavior of individuals or institutions.