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Rudik [331]
2 years ago
14

On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interest rate of 10%. According to

the terms of the loan, the principal amount will not be due for five years. Interest accrues monthly on the first day of each month, beginning November 1, 2018. With respect to this borrowing, Master's December 31, 2018, balance sheet included only a long-term note payable of $500,000. As a result:_______
a. Liabilities are understated by $12,500 accrued interest payable

b. Liabilities are understated by $4,167 accrued interest payable

c. The December 31, 2018, financial statements are accurately presented

d. Liabilities are understated by $8,333 accrued interest payable
Business
1 answer:
romanna [79]2 years ago
7 0

Answer:

b. Liabilities are understated by $4,167 accrued interest payable

Explanation:

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Bank reconciliations are normally prepared on a monthly basis to identify adjustments needed in the depositor's records and to i
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B.

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3 years ago
1. Day Corp. holds 10,000 shares of its $10 par value common stock as treasury stock reacquired in Year 2 for $120,000. On Decem
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7 0
3 years ago
A bank can offer which of the following
konstantin123 [22]

Answer:

Checking Account, Savings Account, Safety Deposit Box

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8 0
3 years ago
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IRINA_888 [86]

Answer:

1. the prices of existing bonds would rise

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7 0
3 years ago
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