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My name is Ann [436]
4 years ago
5

Franklin Company issued a $40,000 note to the Mercantile Bank on August 1, Year 1. The note carried a one-year term and a 12% ra

te of interest. How will the adjusting entry, dated December 31, Year 1, to record accrued interest expense impact the elements of the financial statements
Business
1 answer:
shepuryov [24]4 years ago
3 0

Answer:

Increase liabilities and decrease equity by $2,000

Explanation:

The journal entry to record accrued interest is shown below:

Interest Expense a/c                  Dr.    $2,000            

           To Interest Payable                     $2,000        

(Being Interest accrued is recorded)

For recording this we debited the interest expense as it decreased the equity and credited the interest payable as it increased the liabilities  

The computation is shown below:

= $40,000 × 12% × 5 months ÷ 12 months

= $2,000

The 5 months is taken from August 1 to December 31

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If a retired individual lives on his or her investment income, then it would make sense for this person to prefer stocks with hi
Naily [24]

Answer:

True.

Explanation:

If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.

And her in a case of a retired individual who lives on his or her investment income, then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks. On the other hand, it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.

5 0
3 years ago
If the U.S had been poor in natural resources, how would industrialization have been affected?
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5 0
3 years ago
In the sand-casting production line, the automated mold-making machine costs $120/hr and is tended by hourly personnel at a rate
anzhelika [568]

Answer:

Sand-Casting Production Line:

The total hourly cost to operate the line is:

= $2,339.

Explanation:

a) Data and Calculations:

Costs of automated mold-making machine per hour =                     $120

Cost of personnel tending the mold-making machine =                       45

Cost of mold-making machine =                                                           600

Average cost of mold sand per mold = $0.12 * 2,500 =                      300

Cost of energy to heat the molten metal for pouring = $0.06 * 164     10

Cost rate of the pouring line, including heating crucibles =                  33

Cost of three workers who operate the pouring line =                        60

Cost of buffer storage system used for cooling the castings =           40

Cost of break-away area workers =                                                      38

Cost of casting metal = $1.55/kg * 4.3 * 164 =                                  1,093

Total hourly cost to operate the line =                                          $2,339

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3 years ago
When a customer with a balance due in accounts receivable makes a payment, it is recorded in the receive payments window.
katrin [286]

The answer to your question is True

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5 0
3 years ago
Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of Group o
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Option d. Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of gender.

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This is the type of bias that may exist in the society because of where a person is from, their tribe, religion and their beliefs.

Discrimination based on gender is an offense against an employee who is competent and qualified for a job.

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