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Vesna [10]
3 years ago
10

Universal Travel Inc. borrowed $497,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is paya

ble in full at maturity on October 31, 2019. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2018, in the amount of:
Business
1 answer:
never [62]3 years ago
7 0

Answer:

Dec 31, 2018

Interest expense                        3313.33 Dr

    Interest Payable                           3313.33 Cr

Explanation:

The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.

Interest expense = 497000 * 0.04 * 2/12   = $3313.33

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3 years ago
Oil Wells offers 5.65 percent coupon bonds with semiannual payments and a yield to maturity of 6.94 percent. The bonds mature in
Lorico [155]

Answer:

$826.95

Explanation:

To determine the price of Oil Wells' bonds, we can use the following formula:

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7 0
4 years ago
Read 2 more answers
Why are the gift and estate taxes called wealth transfer​ taxes? what is the tax base for computing each of these​ taxes? why ar
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• For the second question, the answer is Letter C. The tax base for the gift tax is reasonable market value of all gifts completed in the current year minus an annual donee elimination of $14,000, minus a marital deduction for gifts to spouse and charitable deduction if applicable, plus the value of all taxable gifts in preceding years. The tax base for the estate tax is the gross estate of the decedent, minus deductions for expenditures, and a marital or charitable deduction if applicable, plus taxable gifts made after 1976.
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Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purp
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