On the First Day of the Fiscal Year, Hawthorne Company

question 118

Multiple Choice

On the first day of the fiscal year, Hawthorne Company obtained an $88,000, seven-year, 5% installment note from Sea Side Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808. The journal entry Hawthorne would record to make the first annual payment due on the note would include a

• A) debit to Cash for $15,208
• B) credit to Notes Payable for $10,808
• C) debit to Interest Expense for $4,400
• D) debit to Notes Payable for $15,208

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Definitions:

Intravenous (IV) Medication

Drugs that are administered directly into a vein through an IV line for rapid absorption and effect in the body.

Incompatible

Referring to substances, processes, or systems that are unable to work or exist together without conflict.

Needlestick Injury

A wound caused by a needle puncturing the skin, potentially exposing individuals to bloodborne pathogens.

Sharps Disposal

The practice of safely disposing of sharp objects, such as needles, syringes, and scalpels, to prevent injury or transmission of infectious diseases.