To determine the answer to this, let us first determine the
interest using the formula:
Interest = Principal amount * Interest rate * Number of
months / 12
September to December would be 4 months, therefore:
Interest = $50,000 * 0.06 * 4/12
Interest = $1,000
Therefore the adjusting entry should be:
debit to Interest Expense of $1,000
Answer:
True
Explanation:
According to the IRS:
- ordinary expenses are expenses that are common and accepted in a company's trade or industry.
- necessary expenses are expenses that help your company carry on its normal business.
Tax deductible expenses must be ordinary, necessary, and reasonable.
some people say its true others say its false
I would say its false
hope this helps :)
