On January 1,which of the Following Journal Entries Will Be

question 2

Multiple Choice

On January 1,which of the following journal entries will be made by Backyard to record the proceeds and issue of the note?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Social Security Taxes

Social Security Taxes are taxes collected from employees and employers to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Direct Tax

A tax levied directly on an individual's or organization's income or wealth, such as income tax or property tax.

Indirect Tax

A tax collected by an intermediary from the person who bears the ultimate economic burden of the tax; examples include sales taxes and value-added taxes.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.