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NISA [10]
3 years ago
7

On August 1, 2020, a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest

are payable on August 1, 2021. How will the note payable and the related interest be classified in the December 31, 2020, balance sheet?
Note Payable Interest Payable
1. Noncurrent liability Current liability
2. Current liability Current liability
3. Noncurrent liability Not shown
4. Current liability Noncurrent liability
Business
1 answer:
erik [133]3 years ago
5 0

Answer:

Current Liability are those liability that are to be repaid within a short period of time, usually within a year. Example Accounts Payable.

Non Current Liability is that liability that is to be repaid in a long period of time, example Bonds Payable.

Notes Payable will be paid on 1 Aug 2021, which is 7 months after 31 Dec 2020 (within a year) and hence will be classified as Current Liability.

Interest Payable is also a current liability.

Correct Answer: Option #2

Notes Payable – Current Liability

Interest Payable – Current Liability

Explanation:

You might be interested in
Fiscal policy lags:_________.
lianna [129]

Answer:

d) may be shorter or longer than monetary policy lags.

Explanation:

Remember, the term policy lags refers generally to the lag or length of time between the time when an economic problem is discovered, like increased unemployment, and the extent to which policy solves the economic problem.

From a general perspective this policy lags in fiscal policy may be shorter or longer than monetary policy lags depending on the political and economic environment of the country.

5 0
3 years ago
Martinez Company has an old factory machine that cost $66,000. The machine has accumulated depreciation of $36,960. Martinez has
brilliants [131]

Answer:

Journal entries

Explanation:

The journal entries are as follows

(a) Cash A/c Dr $33,000

   Accumulated depreciation A/c Dr $36,960

            To Factory machine A/c $66,000

            To Profit on sale of factory machine A/c $3,960

(Being the sale of machinery is recorded and the remaining balance is credited to the profit on sale of factory machine account)

(b) Cash A/c Dr $19,800

    Loss on sale of factory machine A/c $9,240

    Accumulated depreciation A/c Dr $36,960

            To Factory machine A/c $66,000

(Being the sale of machinery is recorded and the remaining balance is debited to the loss on sale of factory machine account)

8 0
3 years ago
Galena is a new agent for a financial services company. She decides to join the local chamber of commerce, the local association
mixer [17]

Answer:

B) networking

Explanation:

Networking involves the sharing of information and ideas among people in a social group, or social set up. Networking happens in informal groups formed by people who share common interests and ambitions.  Professional use networking to expand their circles of friends, acquaintances, and potential business partners.

Business people join or create networking groups to develop relationships with other business-minded people. By joining the local chamber of commerce, Galena will interact and socialize with other businesswomen. She will make friends and get a platform to engage with other professionals in her field.

4 0
3 years ago
When total revenues fall below total costs, production should end. However, if marginal revenue exceeds variable cost, productio
const2013 [10]

Answer:

False

Explanation:

A firm should end production and shut down only when its total revenue falls below variable costs, because at this point, production will bring about more losses, compared to if the company isn't producing at all.

<u>If total revenue exceeds and can cover its variable cost, a firm should remain in operation in the short run</u> (even if it is incurring losses), as this contributes to paying off the firm's fixed costs.

8 0
3 years ago
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
kupik [55]

Answer:

Saving plan

Explanation:

The saving plan are the life insurance plans that offers the various opportunity to an individual in order save and accumulated the fund for the upcoming future

Since Troy has $50 a month and the same is transferred electronically from his checking account to his saving account so automatically he saves each month

Therefore the same represent the saving plan

7 0
3 years ago
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