Answer:
$30,604
Explanation:
The computation of the interest expense for the year 2020 is as follows:
2019 interest expense is
= Equipment amount × rate of interest
= $311,967 × 9%
= $28,077
The Dec 31 2019 liability of book value is
= $311,967 + $28,077
= $340,044
Now the interest expense for the year 2020 is
= $340,044 × 0.09
= $30,604
Answer:
B) $2,500 per month rent.
Explanation:
Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.
Answer:
an automatic deposit will put a set amount of money away into savings without you having to do it that way you will not have to worry about it and won't be tempted to spend it instead of saving it. it's a good strategy because it eliminates that temptation and makes it so much easier to save without falling off track
Answer:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
Explanation:
Th adjusting entry is shown below:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues
Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31
= $10,800 × 4 months ÷ 6 months
= $7,200
