Answer:
Interest Expense $16,800
To Cash $16.800
(Being the interest payment is recorded)
Explanation:
The journal entry to record semiannual interest payment is shown below:
Interest Expense $16,800
To Cash $16.800
(Being the interest payment is recorded)
For computing this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
The computation is shown below:
= Par value × rate of interest × number of months ÷ total number of months
= $480,000 × 7% × 6 months ÷ 12 months
= $16,800
Since it is semi annual so we take the 6 months
The GDP should be rise by $38,000 due to these two transactions.
The following information should be relevant:
- GDP is the Gross domestic product. It is the amount that should create value-added at the time when the goods & services are produced.
- It is the amount where the item should be firstly purchased.
- Like in the given situation, the new car should be purchased for $38,000.
- And, after six months the car is sold for $31,500.
So, the sale value does not create any value-added.
Therefore we can conclude that The GDP should be rise by $38,000 due to these two transactions.
Learn more about the GDP here: brainly.com/question/15682765
Answer:
Income from operation will decrease by $50,000
Explanation:
given data
inventory of a manufactured = 5,000 units
to find out
effect on income from operations
solution
as we know that in the absorption costing both variable cost and fixed cost are included in the cost of production
so that as under variable costing only the variable manufacturing cost are included in the cost
and
if absorption costing is used the inventory level that will be increased by10 × 5000 = $50,000
so Income from operation will decrease by $50,000
so correct option is c.$50,000 decrease