A Company Pays $18,000 in Interest on Notes,consisting of $12,000

question 34

Multiple Choice

A company pays $18,000 in interest on notes,consisting of $12,000 interest that accrued during the last accounting period and $6,000 of interest accumulated during this accounting period but not previously accrued on the books.The journal entry for the interest payment should:

• A)debit Interest Expense for $18,000 and credit Cash for $18,000.
• B)debit Cash for $18,000 and credit Interest Payable for $18,000.
• C)debit Interest Expense for $6,000,debit Interest Payable $12,000 and credit Cash for $18,000.
• D)debit Interest Payable for $12,000,debit Accrued Interest $6,000 and credit Cash for $18,000.

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Definitions:

Longitudinal Research Design

A methodological approach in research where participants are observed or tested repeatedly over a period of time to identify changes and developments.

Attachment Style

Refers to the pattern of bonding or relationship-building individuals have, which impacts how they relate to others. It is often categorized into secure, anxious, and avoidant styles.

Friendship Formation

The process by which friendly relationships are initiated and developed, often influenced by mutual interests, experiences, and social contexts.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with the environment using their senses and motor abilities.