Answer:
Dr. Cr.
Purchases / Inventory $11,000
Promissory Note Payable $11,000
Explanation:
Promissory note is a signed document which contains a written promise for payment of stated amount to specific person or bond holder on demand or specified date.
In this case the purchases are made and a promissory note of $11,000 is signed for 45 days at 8% annual rate.
This entry will be recorded as the purchases or Inventory are debited and as promissory note is a short term liability so, promissory note payable is credited resulting increase in inventory as well increase in current liability.
<span>Darius has a “conventional” personality type, this is according to Holland’s Six personality types, which means that he likes to work with numbers and data. This kind of person can carry out the task in detail and can easily follow the instruction of a others. </span>
Answer:
9,792 total interest expense
Explanation:
face value 96,000
issued at 94,080
<em>discount 1,920</em>
<u><em>amortization of the bond:</em></u>
discount/total payment
10 years atsemiannual payment = 20 payment
1,920/20 = 96
<u><em>cash proceed:</em></u>
96,000x 10%/2 = 4,800
discount 96
<u>interest expense 4,896 per payment</u>
2 payment per year 9,792 total interest expense
<em />
Answer:
Debit Cost of Goods Sold and credit Merchandise Inventory for $500.
Explanation:
When there is comparism between merchandise inventory and physical count, the difference noticed is accounted to shrinkage. It could be due to damage, clerical error, or goods being lost or stolen.
This affects the profitability of the business especially when shrinkage is large. Retailers tend to increase price of goods to make up for shrinkage losses.
The entry to record shrinkage is the debit cost of goods sold and credit merchandise inventory.
