On November 1,2015,The Bagel Factory Signed a $100,000,6%,six-Month Note Payable

question 78

Multiple Choice

On November 1,2015,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 1,2016.The Bagel Factory should report interest payable at December 31,2015,in the amount of:

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

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Definitions:

Operating Income

Operating income is the amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Departmental Expenses

are costs that are directly incurred by a specific department within an organization and are typically allocated directly to that department.

Direct Operating

Expenses directly associated with the day-to-day operations of a business, such as costs for materials and labor used in producing goods or services.

Sporting Goods Department

A section within a retail store or company that specializes in selling equipment and apparel for various sports and outdoor activities.