1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NARA [144]
3 years ago
10

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

usting entry for this company by completing the following sentence. The required adjusting entry would be to debit the Interest____________ (expense/payable/receivable) account and____________- (debit/credit) the Interest____________ (expense/payable/receivable) account.
Business
1 answer:
valkas [14]3 years ago
3 0

Answer:

The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.

The company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. At the end of a period, if required adjusting entry, the adjusting entry:

Debit Interest expense  and Credit  Interest Payable

You might be interested in
Woodwick Company issues 9%, five-year bonds, on December 31, 2014, with a par value of $96,000 and semi-annual interest payments
ad-work [718]

Answer:

A) The issuance of bonds on December 31, 2016.

Dr Cash 104,031

    Cr Bonds payable 96,000

    Cr Premium on bonds payable 8,031

B) The first interest payment on June 30, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

C) The second interest payment on December 31, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

4 0
3 years ago
Keith and Dena Diem have personal property coverage with a​ $250 limit on​ currency, a​ $1,000 limit on​ jewelry, and a​ $2,500
netineya [11]

Answer:

Total Claim = $2416

Explanation:

The coverage on the currency = $250

The coverage on the jewelry = $1000

The limit on the gold, pewter, and silver = $2500

The amount that is stolen:

The amount of cash = $270

The worth of jewelry = $1734

Pewterware = $1666

The miximum coverage = 250 + 1000 + 2500 = $3750

Actual loss = 270 + 1734 + 1666 = $3670

Reimbursement amount = 250 + 1000 + 1666 = $2916

Total Claim = Total Amount Covered – Deductible  

Total Claim = $2916 - $500 = $2416

4 0
3 years ago
At the end of the period, the balance left in the factory overhead account is equal to the
katrin2010 [14]

Answer:

d.total factory overhead cost variance.

Explanation:

In manufacturing accounting, at the beginning of the period, manufacturing overheads (i.e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i.e. the manufacturing overhead cost applied to work in process is <u>less </u>than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i.e. the manufacturing overhead cost applied to work in process is <u>more </u>than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.

6 0
3 years ago
On Jan 1 2020, Ethan Corporation issued 12% bonds with a face value of $4,000,000. These bonds mature in ten years, and interest
AVprozaik [17]

Answer:

Ethan Corporation

Using the effective-interest method of amortization, the amount of interest expense that should be reported for 2020 is:

= $449,096

Explanation:

a) Data and Calculations:

Face value of bonds issued = $4,000,000

Issue price of the bonds =         4,498,490

Premium on the bonds =            $498,490 ($4,498,490 - $4,000,000)

Coupon interest rate = 12%

Effective interest rate = 10%

Interest payments = June 30 and December 31

June 30:

Cash payment for bond interest = $240,000 ($4,000,000 * 6%)

Interest expense =                            224,925 ($4,498,490 * 5%)

Amortization of bond premium =      $15,075 ($240,000 - $224,925)

Bonds value = $4,483,415 ($4,498,490 - $15,075)

December 31:

Cash payment for bond interest = $240,000 ($4,000,000 * 6%)

Interest expense =                              224,171 ($4,483,415 * 5%)

Amortization of bond premium =      $15,829 ($240,000 - $224,171)

Bonds value = $4,467,586 ($4,483,415 - $15,829)

Interest expense for 2020 = $449,096 ($224,925 + $224,171)

4 0
2 years ago
Match the products below with the type of market in which they are sold
Lera25 [3.4K]

Answer:

Oil to Commodity market,  Treasuries to current exchange market, and Dollars to bond market

Explanation:

4 0
2 years ago
Other questions:
  • Goodman Company's inventory records show the following data: Units 5,000 4,500 3,000 Unit Cost $9.00 8.20 7.00 Inventory, Januar
    10·1 answer
  • Why would a monarch from one country be interested in hiring an explorer from a foreign country?
    9·1 answer
  • Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direc
    14·1 answer
  • A furniture company is producing two type of furniture. Product A requires 8 board feet of wood and 2 Ibs of wicker. Product B r
    9·1 answer
  • As a component of real estate value, the principle of substitution states that
    6·1 answer
  • All of the following statements are true regarding the trading of ADRs EXCEPT: A ADRs are traded on the New York Stock Exchange
    15·1 answer
  • On February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328000. An old building on the property
    9·1 answer
  • Aria Perfume, Inc., sold 2,870 boxes of white musk soap during January of 2021 at the price of $80 per box. The company offers a
    14·1 answer
  • How much money did he save by paying
    10·1 answer
  • QUESTION 8 of 10: True or False: Freestanding locations have lots of direct competition
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!