Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
Answer:
A
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity costs are costs associated with "the road not taken".
An example of opportunity cost : you quit your job where you ern $50,000 to start your business. the opportunity cost of starting your business is $50,000 - your salary that you would be forgoing to start your business
