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2 years ago

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QS 9-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $12,000, 45-day, 7% note from a customer. (

1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.)

1 answer:

iragen [17]2 years ago

3 0

Answer and Explanation:

The journal entries are shown below;

a. Interest receivable Dr ($12,000 × 7% × 30 days ÷ 360 days) $70

To Interest revenue $70

(Being the interest revenue is recorded)

For recording this we debited the interest receivable as it increased the asset and credited the interest revenue as it also increased the revenue

b. Cash Dr $12,105

To interest receivable $70

To interest revenue ($12,000 × 7% × 15 days ÷ 360 days) $35

To Note receivable $12,000

(being cash received is recorded)

For recording this we debited the cash as it increased the assets and credited the interest receivable, interest revenue and note receivable as it decreased the asset and increased the revenue

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Answer:

See explanation section

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Answer:

Option C Keeping customers satisfied

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Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes d

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Answer:

See Explanation

Explanation:

Given

$U(S,T) = 2ST$

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$M_U_T=2S$

The following details are omitted from the question

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$P_T = \$50$ --- Spent on dancing

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This is calculated by:

$B = P_S * S + P_T *T$

This gives:

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<em>See attachment for the budget line equation</em>

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First, we determine the marginal rate of substitution (MRS) using:

$MRS = \frac{MU_s}{MU_t} = 1$

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This implies that:

$\frac{2S}{2T} = 1$

Cross Multiply

$2S = 2T * 1$

$2S = 2T$

Divide by 2

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Substitute T for S in the budget equation

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<em>See attachment for point R</em>

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