Answer:
Darby Company
The amount of interest payable at December 31, Year 1 is:
$76.67
Explanation:
a) Data and Calculations:
Cash Revenue = $1,300
Bank Note Payable = $2,300
Interest rate on Bank Note = 10%
Issue date of bank note = September 1, Year 1
Term of bank note = 1 year
Amount of interest payable on December 31, Year 1:
= $2,300 * 10% * 4/12 = $76.67
b) The amount of interest payable on the loan totals $230 ($2,300 * 10%). However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67. This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2. In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.
<span><span>Economy- Macroeconomic conditions affect labor supply and demand. Job losses during a recession mean less disposable income for consumers and less demand for cars.</span>
<span>Globalization-Globalization involves the import of foreign automobiles and relocation of manufacturing facilities overseas. This has led to a steady decline in U.S. automobile-sector employment.</span>
<span>Compensation- Compensation includes wages and benefits. According to an April 2011 U.S. Bureau of Labor Statistics report, there has been upward pressure on wages and downward pressure on benefits.</span>
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Per capita means per person. You would take the total debt and divide by the number of people. That will give you federal debt per capita.
