An Installment Note Payable for a Principal Amount of $94,000

question 46

Multiple Choice

An installment note payable for a principal amount of $94,000 at 6% interest requires Lawson Company to repay the principal and interest in equal annual payments of $22,315 beginning December 31, of the first year, for each of the next five years. After the final payment, the carrying amount on the note will be

• A) $1,263
• B) $21,053
• C) $22,315
• D) $0

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Definitions:

Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time frame.

Satisfied

The feeling of contentment or pleasure in fulfilling desires or needs.

Partners

Individuals who engage in a shared business or personal relationship, characterized by mutual cooperation and responsibility.

Never-married Mothers

Women who have children but have never been legally married, highlighting a specific demographic in societal studies.