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erastova [34]
4 years ago
10

On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat

e of interest is 8% compounded annually. For the 2nd year ended December 31, 2019, Interest Expense on this note payable equals _________.
Business
1 answer:
solniwko [45]4 years ago
6 0

Answer:

Explanation:

Interest expense refers to charges paid for borrowing money. It is the money that a lender charges  borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.

Given that:

Moonbooks received $79,380 =  principal amount of debt (P)

The interest rate (r) = 8% annually = 0.08.

Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350

For the second year i.e 2019 The principal amount of debt = $79380  + $6360 = $85730

Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858

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3 years ago
Which of the following is TRUE?​ a. ​All of the above b. ​Attending and listening are the ways in which you communicate empathy.
AysviL [449]

Answer:

a. All of the above

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Also, such traits serve as a basis for conducive working alliance between counselor and the client.

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3 years ago
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3 years ago
One example of a company that is allowed to sell shares to the public​
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"Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,190 for sure. What is the
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