On November 1,2012,The Bagel Factory Signed a $100,000,6%,six-Month Note Payable

question 64

Multiple Choice

On November 1,2012,The Bagel Factory signed a $100,000,6%,six-month note payable with the amount borrowed plus accrued interest due six months later on May 1,2013.The Bagel Factory should report interest payable at December 31,2012,in the amount of:

• A)$0.
• B)$1,000.
• C)$2,000.
• D)$3,000.

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Definitions:

Ounce

A unit of weight in the avoirdupois system, equal to 1/16 of a pound or approximately 28.35 grams.

Coffee

A brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Gram

A unit of weight that is one thousandth part of a kilogram, measured in the metric system.