<span>market economy market economy is the answer
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Answer:
B)debit Interest Expense, $200; credit Interest Payable, $200
Explanation:
The adjusted journal entry for the interest expense is shown below:
Interest expense A/c Dr $200
To Interest payable $200
(Being the interest adjusted entry is recorded)
Since we have to record the interest expense from September 1 to September 30 which reflects 1 month and the computation of interest expense is shown below:
= Principal × rate × (number of month ÷ total number of months in a year)
= $40,000 × 6% × (1 ÷ 12)
= $200
Answer:
$2,320
Explanation:
the interest accrued by February 28, 20X5 = $10,000 x 12% = $1,200
since the interest compounds yearly, the interest accrued by December 31, 20X5 = ($11,200 x 12% x 10/12) + $1,200 = $1,120 + $1,200 = $2,320
Compound interest means that earned interest will earn more interest itself in the next period. That is why you need to include the previously accrued interest in the interest calculation for the second part.
Answer:
(A) less
Explanation:
Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.
Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.
This means, $100,000 today will have the same value as $103,000 one year later.
Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.
