On June 1,2012,a Company Borrows $100,000 on a 10% Note

question 13

Multiple Choice

On June 1,2012,a company borrows $100,000 on a 10% note due to a bank in one year.What amount of interest expense is reported for the year ending December 31,2012?

• A) $5,000
• B) $5,833
• C) $1,000
• D) $10,000

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Definitions:

Horace Mann

Horace Mann was an American educational reformer and politician known for his advocacy for public education, the establishment of teacher training programs, and his role in the creation of the first public schools in the United States.

Universal Education

The right or opportunity for all people, regardless of background, to receive an education at all levels.

Talented Tenth

A term coined to describe the top ten percent of African Americans in terms of intelligence and leadership, believed to have the potential to lead the race towards social and economic equality.