On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
Explanation:
- On November 1, Wright Co. borrowed $20,000 cash from the Third Bank by signing a 90-day, and 6% of interest-bearing note.
- On December 31, it was recorded an adjusting entry to interest expense of $200.
- On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
- Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
- bonds,convertible debt, loans or lines of credit
- The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
- Interest expense is an amount determined by the interest rate on an account.
<span>When there is excess supply of a market product in a market what will happen?
</span>Disequilibrium
<span>The cost-benefit analysis Isaiah used is part of a systematic approach, a process where business decisions are analysed. In this case, the benefits acquired from using the commercial janitorial and maintenance are summed up, and the costs associated with taking their services are subtracted from it. The outcome of this analysis will help determine Isaiah if the commercial janitorial and maintenance services, inc. is financially beneficial to the company or not.</span>
