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Elden [556K]
4 years ago
5

You have $65 in your savings account at the beginning of a month. The bank pays you

Business
1 answer:
wel4 years ago
3 0

Answer:

$0.15

Explanation:

Interest is calculated using the formula below.

I = P x i x t

where I = interest

P= principal amount.

i=interest rate

t=time

Interest is given as an annual percentage. A 2.75 % interest will translate to 2.75/100 divided by 12 monthly interest. Therefore, the applicable interest rate is 0.00229 %

interest for the month will be

i=$65 x 0.00229 x 1

=$0.14895

=$0.15

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Read 2 more answers
On January 1, 2021, Byner Company purchased a used tractor. Byner paid $6,000 down and signed a noninterest-bearing note requiri
eduard

Answer:

1. The Journal Entry

Sr. No                    Particulars                          Debit                      Credit

                       Tractor- Machinery               $ 45000

                              Cash                                                              $6000

                            Notes Payable                                                 $ 39,000

The journal entry to record the acquisition of the tractor.

Working : Interest Expense Payable:

11% of 39,000= $ 4290

<u>2. Income Statement of 2021</u>

Revenues                                              xxxxx

Less

Depreciation                               xxxxx

Interest Expense                        4290

<u>Profit                                                         xxxx</u>

<u />

<u>2. Income Statement of 2022</u>

Revenues                                              xxxxx

Less

Depreciation                               xxxxx

Interest Expense                        4290

<u>Profit                                                         xxxx</u>

<u>3. Balance Sheet of 2021</u>

Debit Side

Truck                        $45000

<u>Less Depreciation      xxxxx</u>

Credit Side

<u>Interest Payable   4290</u>

<u>3. Balance Sheet of 2022</u>

Debit Side

Truck                        $45000

<u>Less Depreciation      xxxxx</u>

Credit Side

<u>Interest Payable   4290</u>

7 0
3 years ago
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