On November 1,2018,The Bagel Factory Signed a $100,000,6%,six-Month Note Payable

question 85

Multiple Choice

On November 1,2018,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 1,2019.The Bagel Factory records the appropriate adjusting entry for the note on December 31,2018.In recording the payment of the note plus accrued interest at maturity on May 1,2019,The Bagel Factory would

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

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Definitions:

Payroll Costs

The total amount of money a company spends on employee salaries, wages, benefits, and taxes.

Higher-Wage Workers

Employees who receive compensation at a rate higher than the average or standard in their sector, often due to specialized skills, experience, or high performance.

Healthcare Benefits

Refers to the health-related support and insurance plans provided by an employer to their employees as part of their compensation package.

Restricted Stock Option Plans

These are employee benefit plans that grant employees stock options with restrictions on sale or transfer until certain conditions, like vesting, are met.