Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $1,100
To Interest revenue $100
To Note receivable $1,000
(Being cash received in respect of note receivable, interest accrual is recorded)
The computation of accrued interest is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= 1,000 × 10%
= $100
Answer:
The result of K's inaction causes an increase in the outstanding loan by $50
Explanation:
<em>Step 1: Determine the interest amount</em>
The interest amount can be determined as follows;
I=PRT
where;
I=interest amount
P=principal amount
R=annual interest rate
T=time
In our case;
I=unknown
P=$1,000
R=5%=5/100=0.05
T=1 year
replacing;
I=1,000×0.05×1=$50
<em>Step 2: Determine the total loan amount</em>
This can be expressed as;
A=P+I
where;
A=total loan amount
P=principal amount
I=interest amount
In our case;
A=unknown
P=$1,000
I=$50
replacing;
A=1,000+50=1,050
The loan amount due after a year=$1,050
The result of K's inaction causes an increase in the outstanding loan by $50
<span>57% and 43%
I'm pretty sure that this is what you're looking for so if you need more help or want me to explain this more just ask!
- Just Peachy</span>
Answer:
-$8,600
Explanation:
Data provided in the question:
Distributions = $44,000
Basis = $42,000
Amount of ordinary income allocated = $10,600
Now,
Capital gain from distribution in excess of basis
= Distribution - Basis - Amount of ordinary income allocated
= $44,000 - $42,000 - $10,600
= -$8,600
here, negative sign depicts there is a capital loss
