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Elden [556K]
2 years ago
14

Phipps Company borrowed $25,000 cash on October 1, 2016, and signed a nine-month, 8% interest-bearing note payable with interest

payable at maturity. Assuming that adjusting entries have not been made during the year, the amount of accrued interest payable to be reported on the December 31, 2016 balance sheet is which of the following? a) $250 b) $300 c) $500 d) $750
Business
1 answer:
anzhelika [568]2 years ago
5 0

Answer:

The correct option is C,$500

Explanation:

The amount of interest accrual is the interest on the sum borrowed from October 1 2016 to 31 December 2016,that is 3 months of interest,which is computed below:

Accrued interest =principal*stated interest rate*number of accrued months/12

principal is $25,000

stated interest is 8%

number of accrued months is 3

accrued interest =$25,000*8%*3/12=$500

The accrued interest is to be debited interest expense  because it is an increase in expense  and credited to interest payable as a liability

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Variable costs are
Semmy [17]

Answer:

the costs that change depending on a company's performance

Explanation:

Variable costs refer to the costs that fluctuate with the level of production. An increase or decrease in the output level results in variable costs moving in the same direction. If the business stops production, the variable costs will be nil.

Raw materials and packaging costs are good examples of variable costs. The more a company produces, the more materials it consumes, and the higher the costs of purchasing the materials.

6 0
3 years ago
If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, whi
Volgvan

Answer:

option (B) 100

Explanation:

Data provided in the question:

Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days

Standard deviation of daily demand = 20

Now,

Standard deviation of usage during lead time

= Standard deviation of daily demand × √(Lead time)

= 20 × √25

= 20 × 5

= 100

Hence,

The answer is option (B) 100

7 0
3 years ago
A society decides that it needs to produce more corn to feed the growing population. What must it do before it begins the produc
Aneli [31]

Answer:

Perform an analysis on existing resources such as land availability, water availability, manpower, mechanization

Explanation:

The first thing required in such case is to first analyze the existing resources available to them to begin the production process. One factor to be considered is water availability. Do they have the available amount of water for irrigation purposes or for other purposes in the production process. Do they have available land area that can feed a growing population. They need to also check if they have adequate manpower and mechanization to engage in such large-scale production of corn.

3 0
3 years ago
Which crime is BEST represented by the following situation?
Shtirlitz [24]

Answer:

The answer is C. Money Laundering

Explanation:

Solution

From the question stated it can be described as a crime of money laundering.

Money laundering involves the use of illegally obtained money for legitimate purposes.

In this scenario, Jeff uses $15,000 from his illegal sales of drug paraphernalia for setting up a toy store. The origin of the money, which was obtained through illegal method was hidden.

Robbery and larceny are examples of theft that involves stealing items of value from another person. Embezzlement is also a kind of theft. It involves withholding of items with the intention of theft .

4 0
3 years ago
The government sector get its income mostly from exports to other countries.
Dmitriy789 [7]

Answer:

Explanation:

false

6 0
3 years ago
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