Question :
51. On September 1, 2015, Daylight Donuts signed a $100,000, : 1256005
51. On September 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2016. Daylight Donuts should report interest payable at December 31, 2015, in the amount of:
a.$0.
b.$1,500.
c.$3,000.
d.$4,500.
52. On September 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2016. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2015. In recording the payment of the note plus accrued interest at maturity on March 1, 2016, Daylight Donuts would
a.Debit Interest Expense, $3,000.
b.Debit Interest Expense, $1,500.
c.Debit Interest Payable, $1,500.
d.Debit Interest Expense, $4,500.
53. On December 1, 2015, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2016. Old World Deli should record which of the following adjusting entries at December 31, 2015?
a.Debit Interest Expense and credit Interest Payable, $7,500.
b.Debit Interest Expense and credit Cash, $7,500.
c.Debit Interest Expense and credit Interest Payable, $1,250.
d.Debit Interest Expense and credit Cash, $1,250.
54. On December 1, 2015, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2016. Old World Deli records the appropriate adjusting entry for the note on December 31, 2015. What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2016?
a.$300,000.
b.$301,250.
c.$306,250.
d.$307,500.
55. On November 1, 2015, New Morning Bakery signed a $200,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. New Morning Bakery should record which of the following adjusting entries at December 31, 2015?
a.Debit Interest Expense and credit Interest Payable, $2,000.
b.Debit Interest Expense and credit Cash, $2,000.
c.Debit Interest Expense and credit Interest Payable, $6,000.
d.Debit Interest Expense and credit Cash, $6,000.
56. On November 1, 2015, New Morning Bakery signed a $200,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. New Morning Bakery records the appropriate adjusting entry for the note on December 31, 2015. What amount of cash will be needed to pay back the note payable plus any accrued interest on May 1, 2016?
a.$200,000.
b.$202,000.
c.$204,000.
d.$206,000.
57. The Pita Pit borrowed $100,000 on November 1, 2015, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2016. In connection with this note, The Pita Pit should report interest expense at December 31, 2015, in the amount of:
a.$0.
b.$1,000.
c.$2,000.
d.$6,000.
58. The Pita Pit borrowed $100,000 on November 1, 2015, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2016. In connection with this note, The Pita Pit should report interest expense in 2016 for the amount of:
a.$0.
b.$4,000.
c.$2,000.
d.$6,000.
59. Universal Travel, Inc. borrowed $500,000 on November 1, 2015, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2016. In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2015, in the amount of:
a.$8,000.
b.$30,000.
c.$5,000.
d.$25,000.
60. Universal Travel, Inc. borrowed $500,000 on November 1, 2015, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2016. In connection with this note, Universal Travel, Inc. should record interest expense in 2016 in the amount of:
a.$8,000.
b.$30,000.
c.$5,000.
d.$25,000.
