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lara [203]
3 years ago
12

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

usting entry for this company by completing the following sentence. The required adjusting entry would be to debit the Interest (expense/payable/receivable) account and (debit/credit) the Interest (expense/payable/receivable) account.
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

Explanation:

Outstanding number of days is the period over which the loan balance remains unpaid. Since this loan earns 5% interest, required adjusting entry for this company would be to Debit<em> interest expense</em> <em>account</em> and Credit the interest <em>payable account. </em>It is an accounting requirement that all expenses be debited . On the other hand, interest payable  is the amount that a company owes a lender and is therefore credited as the corresponding journal entry to the interest expense .

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Answer:

6.95

Explanation:

Coupon rate = $69.50/$1,000 = .0695, or 6.95 percent

4 0
2 years ago
Expenses, such as depreciation on buildings are also known as variable expenses. t or f?
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The statement “Expenses, such as depreciation on buildings are also known as variable expenses.”, is false, due to the fact that depreciation is a fixed cost since throughout its useful life as an asset, it reoccurs in the same amount per period, and thus, depreciation cannot be considered a variable cost. Nevertheless, as with all things, there is an exception. The depreciation will be sustained in a pattern that is more consistent with a variable expense, only if a business recruits a usage-based depreciation methodology.

To add, the corporate expense that alters with the company’s production output is called the variable cost.

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3 years ago
If a driver with an insurance policy drives infrequently, it can
e-lub [12.9K]

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Explanation:

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Therefore, the correct option is B.

3 0
3 years ago
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Suppose you are the Purchasing Manager for a large chain of restaurants in the United States, and you need to make your semiannu
mrs_skeptik [129]

Answer with Explanation:

Requirement 1.

The US import will increase by $1,500,000 due to purchase of indian tea product and this import of tea would result in increase of capital outflow as the Net export particular to importation is negative hence capital outflow is genuine effect.

Requirement 2.

The Net exports can be calculated as under:

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The US Net Exports would decrease by $1,500,000.

4 0
3 years ago
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Answer:

D

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3 years ago
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