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5. On October 1, 2013, you borrow $200,000 at 6% interest and record the promissory note. In April and again in October of the following
5. On October 1, 2013, you borrow $200,000 at 6% interest and record the promissory note. In April and again in October of the following year, you are required to pay half the annual interest to your creditor. On December 31, 2013, your adjusting journal entry for the quarter should: A. debit Interest Expense for $3,000 and credit Interest Payable for $3,000. B. debit Interest Payable for $3,000 and credit Interest Expense for $3,000. C. debit Interest Expense for $6,000 and credit Cash for $6,000. D. debit Interest Expense for $6,000 and credit Interest Payable for $6.000. 6. A company typically records the amount owed to suppliers for goods or services when: A. they are ordered. B. a verbal commitment to buy has first been made. C. they are paid for. D. the goods or services are received. 7. A company receives $95 for merchandise sold to a consumer, of which $5 is for sales tax. The $5 of sales tax: A. increases sales revenue. B. increases current liabilities. C. increases selling expenses. D. is not recorded. 8. The three key pieces of information that are stated on a bond certificate arc: A. the interest payment. the face value of the bond, and the credit rating of the company. B. the market interest rate, the price of the bond, and the maturity date. C. the stated interest rate, the face value of the bond, and the maturity date. D. the interest payment, the issue price of the bond, and the credit rating of the company
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