A $30,000, Three-Month, 7% Note Payable Was Issued on December

question 75

Multiple Choice

A $30,000, three-month, 7% note payable was issued on December 1, 2015. What is the amount of accrued interest on December 31, 2015?

• A)$175
• B)$267
• C)$133
• D)$275

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Definitions:

Modifying

The act of making changes or alterations to something, often to improve it or adjust it to different conditions or uses.

New Business

Pertains to recently established companies or the act of securing new commercial engagements or clients in a business context.

Machinery and Equipment

Assets that include heavy machinery and other equipment used in the production or supply of goods and services.

Repairs

Expenditures to maintain the operational status of assets, rather than to improve or extend their life.