On October 1,a $30,000,6%,three-Year Installment Note Payable Is Issued by a Company.The

question 55

Multiple Choice

On October 1,a $30,000,6%,three-year installment note payable is issued by a company.The note requires that $10,000 of principal plus accrued interest be paid at the end of each year on September 30.The issuer's journal entry to record the second annual interest payment would include:

• A)A debit to Interest Expense for $1,800.
• B)A debit to Interest Expense for $1,200.
• C)A credit to Cash for $11,800.
• D)A credit to Cash for $10,000.
• E)A debit to Notes Payable for $1,200.

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Definitions:

Major Depressive Episode

A period characterized by severely depressed mood and a lack of interest in activities, significantly impairing daily life.

Hypomanic Episode

A milder form of a manic episode, marked by elevated, expansive or irritable mood, but not to the extent of a full-blown manic episode.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a publication by the American Psychiatric Association that provides a comprehensive classification and criteria for mental disorders.

Rapid Cycling

A term describing a pattern in bipolar disorder where an individual experiences four or more episodes of mania, hypomania, or depression within a year.