On November 1, 2012, the Bagel Factory Signed a $100,000

question 74

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 records the appropriate adjusting entry for the note on December 31, 2012. In recording the payment of the note plus accrued interest at maturity on May 1, 2013, The Bagel Factory would

• A) Debit Interest Expense, $2,000.
• B) Debit Interest Expense, $1,000.
• C) Debit Interest Payable, $2,000.
• D) Debit Interest Expense, $3,000.

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Definitions:

Microchip

A small semiconductor device containing electrical circuits, used in a wide variety of electronic equipment and devices.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

International Trade

The exchange of goods, services, and capital among various countries and territories, crossing their international borders.