I don't really know of Bill Smith but I know Adam
Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .
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Answer:
B. a debit to Interest Expense for $ 42 comma 750.
C. a credit to Cash of $ 137 comma 750.
Explanation:
Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.
As per given data
Principal Payment = $95,000
First Interest payment = $475,000 x 9% = $42,750
Total Payment = $95,000 + $42,750 = $137,750
Journal Entry for first payment
Dr. Interest Expense $42,750
Dr. Not Payable $95,000
Cr. Cash $137,750
The level of demand that represents a real intention to purchase by people with the means to pay
Answer:
1. Debit Interest Expense $7,000; debit Notes Payable $7,238; credit Cash $14,238.
Explanation:
The journal entry is shown below:
Note payable A/c Dr $7,238
Interest expense A/c Dr $7,000
To Cash A/c $14,238
(Being the first payment on the note is recorded)
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest
= $100,000 × 7%
= $7,000
And, the remaining balance left is reported in the note payable account
I think it’s D. All of the above
