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:

Physicians

Medical professionals who diagnose, treat, and help prevent diseases, injuries, and other physical and mental impairments in humans.

Health Care Proxy

A legal document that allows an individual to appoint someone else to make medical decisions on their behalf if they are unable to make decisions themselves.

Durable Power

In legal and financial contexts, a form of power of attorney that remains effective even if the grantor becomes incapacitated.

Attorney

A professional authorized to practice law, representing and advising clients in legal matters and disputes.