Use This Information to Answer the Following Question

question 18

Multiple Choice

Use this information to answer the following question. The transactions below pertain to Dunhill Company,whose fiscal year ends April 30.
The April 30 adjusting entry,rounded to the nearest dollar,to accrue the interest expense on the note payable is:

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Definitions:

Real Interest Rate

An interest rate fine-tuned for inflation effects, illustrating the actual charge of borrowing or the factual yield from savings deposits.

Inflation Rate

The rate of climb in the general price structure for goods and services, slashing the potency of purchasing.

CPI

Stands for Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

GDP Deflator

A benchmark for evaluating the price levels of all new, home-produced, end-use goods and services within an economic system.