On May 1,2012,Mink,Inc

question 235

Multiple Choice

On May 1,2012,Mink,Inc.borrowed $10,000 by issuing a 12%,3-month note and another $10,000 by issuing a 12%,6-month note.Interest expense for the month ended May 31,2012 equals ________.

• A)$(400)on the income statement
• B)$(200)on the income statement
• C)$(300)on the income statement
• D)$(2,400)on the income statement

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Definitions:

Fractures

Breaks in rock formations, which can occur due to stress such as tension, compression, or shearing forces.

Beddings

Layers of sedimentary rock that indicate the accumulation of sediment over time, each with distinctive properties.

Strait of Gibraltar

A narrow passage of water connecting the Atlantic Ocean to the Mediterranean Sea, bordered by Spain in the north and Morocco in the south.

Atlantic Ocean

The Atlantic Ocean is the second-largest ocean in the world, separating the continents of North America and Europe to the west from Africa and Europe to the east.