On May 1,Chris Company Borrowed $30,000 from Third Street Bank

question 149

Multiple Choice

On May 1,Chris Company borrowed $30,000 from Third Street Bank on a one-year,6% note.If the company keeps its records on a calendar year,an entry is needed on December 31 to increase

• A)interest expense by $600.
• B)interest expense by $1,800.
• C)interest payable by $900.
• D)interest payable by $1,200.

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Definitions:

Incubation

Unconscious processing that works on a specific problem while the mind is otherwise occupied.

Contrary Recognition

The ability to identify and acknowledge ideas or facts that oppose personal beliefs or expectations.

Inference Rules

Set guidelines or principles used to deduce new information or conclusions from known facts or premises.

Mental Graph

Mental Graph is a conceptual representation of information in the form of a graph structure in one's mind, used to illustrate relationships between concepts or data.