A $1,200,000 Note Payable Requires 10% Annual Interest with Interest

question 78

Multiple Choice

A $1,200,000 note payable requires 10% annual interest with interest due monthly on the 15^th of each month.An interest payment of $10,000 was made on April 15^th and $5,000 of interest expense was accrued in an adjusting entry on April 30^th.The company makes the next interest payment due on May 15.How would the company record this transaction?

• A)Debit Interest Expense for $5,000 and credit Cash for $5,000.
• B)Debit Interest Expense for $10,000 and credit Cash for $5,000.
• C)Debit Interest Payable for $10,000 and credit Cash for $10,000.
• D)Debit Interest Expense for $5,000,debit Interest Payable for $5,000,and credit cash for $10,000.
• E)Debit Interest Payable for $15,000,credit Cash for $10,000,and credit Interest Expense for $5,000.

Understand and interpret stem-and-leaf displays.

Interpret histograms and their characteristics.

Analyze time plots and trends over time.

Identify and interpret outliers.

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Definitions:

Gender Schemas

A person’s cognitive structures that organize information about gender into categories, which include gender roles and gender identity.

Gender Roles

The positions, characteristics, and interests that are considered normal and are expected for boys/men or for girls/women in a particular culture; this social information is stored in each person’s gender schemas.

Semenarche

The beginning of development of semen in boys at puberty, marking the onset of reproductive capability.

Spermarche

The first occurrence of ejaculation in males, which is a significant event in male puberty.