Payment protection insurance (PPI) is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt.
The answer is A.True
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Answer:
Debit interest expenses for $15,000
Credit interest payable for $15,000
Explanation:
Since January 1 to June 30 is 6 months, we need to calculate interest expenses for the 6 months as follows:
Monthly interest expenses = ($500,000 * 6%) / 12 = $2,500
Interest expenses for 6 months = $2,500 * 6 = $15,000
The adjusting entry required will therefore look as follws:
<u>Date Particulars Dr ($) Cr ($) </u>
June 30 Interest expenses 15,000
Interest payable 15,000
<u> (</u><em><u>To record 6 months interest payable on note.) </u></em><u> </u>
Answer:
The answer is: $4,160
Explanation:
To calculate Dewitt Company's adjusted cash balance per books we must add: cash balance per book + notes and interest collected. Then we subtract bank service charges and NSF check.
adjusted cash balance per books = ($3,500 + $850) - ($20 + $170) =
adjusted cash balance per books = $4,350 - $190 = $4,160
The adjusted cash balance per books doesn't include deposits in transit or outstanding checks (these are included in cash balance reconciled per bank statement).
