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Inessa [10]
3 years ago
13

A company borrowed $4,000 from the bank at an interest rate of 9%. By the end of the accounting period, the loan had been outsta

nding for 30 days. Demonstrate the required adjusting entry by choosing the correct statement.
Business
1 answer:
Naddik [55]3 years ago
7 0

Answer:

The required adjusting entry:

Debit Interest expense $30

Credit Interest payable $30

Explanation:

The company borrowed $4,000 from the bank at an interest rate of 9%.

Th amount of interest the company paid per year = $4,000 x 9% = $360

Assuming that there are 360 days per year to calculate interest. By the end of the accounting period, the loan had been outstanding for 30 days. The company recording the interest expense:

$360 x 30/360 = $30

by the adjusting entry:

Debit Interest expense $30

Credit Interest payable $30

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An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as o
lesya692 [45]

Answer: single use plan

Explanation: In simple words,single use plan refers to the plan that is made for achieving a goal that will not repeat in future.

A program plan refers to the plan that an organisation makes with an objective of outlining the activities and events that the employees have to follow for achieving organisational goals.  

Hence, from the above we can conclude that a program is a single use plan as it outlines activities for a specific project that needs to be performed.  

4 0
2 years ago
Alpha Products maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budget for
ad-work [718]

Answer:

its weighted cost of capital for the coming year is 9.64%

Explanation:

WACC is the minimum return expected from a project. It shows the risk of the company.

<u>Calculation of WACC.</u>

Capital Source              Weight            Cost               Total

Debt                                  40%            6.60%             2.64%

Common Equity               60%             11.67%            7.00%

Total                                100%                                    9.64%

Cost of Debt = Market Interest Rate × ( 1 - tax rate)

                     = 11%×(1-0.40)

                     = 6.60%

Cost of Equity = (Next year`s dividend/Current Market Price of a share)+Expected growth rate

                       = ($1.40/$30)+0.07

                       = 11.67%

8 0
2 years ago
This type of budgeting technique is commonly used because it provides a budget that is tied directly to the company's strategy a
mixer [17]

Answer:

Objective and task.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis. The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

The budgeting method described in the question is called objective and task. It is typically used by various organizations or companies due to the fact that, it's tied directly to the strategy and tactics of a company on an annual basis. Also, it is used to set a budget for marketing efforts while anticipating on informations about the company.

8 0
2 years ago
Jeff is a member of Go Big Red, LLC. Jeff decides he does not like the color red, preferring instead the colors black and gold.
Vanyuwa [196]

Answer:

Option "D" is correct.

Explanation:

Option "D" is correct because When a person or member dissociates then the person loses the right to manage, losses the right to act, ceases from their duty of loyalty, ceases from the duty of care immediately if any event occurs after dissociation and the member has the right to find their interest. Therefore, from the given options it can be seen that the duty of care remains intact when only to that event that had occurred before the dissociation.

7 0
2 years ago
Any Good Knock Knock Jokes? <br><br> Asking for an assignment and it cannot be proven that I'm not.
Over [174]
Knock, Knock...
-Who’s there?
-interrupting cow
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-MOOOOO
5 0
3 years ago
Read 2 more answers
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