On October 1,2009,you Borrow $200,000 at 6% Interest and Record

question 9

Multiple Choice

On October 1,2009,you borrow $200,000 at 6% interest and record the promissory note.In April and again in October of the following year,you are required to pay half the annual interest to your creditors.On December 31,2009,your journal entry for the quarter should:

• A)debit Interest Expense for $3,000 and credit Interest Payable for $3,000.
• B)debit Cash for $3,000 and credit Accrued Interest for $3,000.
• C)debit Interest Expense for $6,000 and credit Cash for $6,000.
• D)debit Interest Expense for $6,000 and credit Notes Payable for $6,000.

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Definitions:

Urbanization

Urbanization is the process by which cities grow and higher proportions of the population come to live in urban areas, often associated with shifts from rural to urban livelihoods.

Urban Way

Refers to the lifestyle and cultural norms prevalent in urban areas as opposed to rural settings.

Concentric Zone Model

A social model that describes urban land use in concentric circles, with the central business district at the center.

Ecological Succession

In the theory of human ecology refers to the process by which a distinct urban group moves from one area to another and a second group comes in to replace the group that has moved out.