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VikaD [51]
3 years ago
11

Raxon Company borrowed $40,000 from the bank signing a 6%, 3-month note on September 1. Principal and interest are payable to th

e bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be:A)debit Interest Expense, $2,400; credit Interest Payable, $2,400.B)debit Interest Expense, $200; credit Interest Payable, $200.C)debit Note Payable, $2,400; credit Cash, $2,400.D)debit Cash, $600; credit Interest Payable, $600
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
3 0

Answer:

B)debit Interest Expense, $200; credit Interest Payable, $200

Explanation:

The adjusted journal entry for the interest expense is shown below:

Interest expense A/c Dr  $200

   To Interest payable                   $200

(Being the interest adjusted entry is recorded)

Since we have to record the interest expense from September 1 to September 30 which reflects 1 month and the computation of interest expense is shown below:

= Principal × rate × (number of month ÷ total number of months in a year)

= $40,000 × 6% × (1 ÷ 12)

= $200

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Answer:

Amount received = 217,043.56 (Approx)

Explanation:

Given:

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Computation:

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Amount received = 217,043.56 (Approx)

7 0
3 years ago
C.B. Management, Inc., had a franchise agreement with McDonald’s Corp., to operate McDonald’s restaurants in Cleveland, Ohio. Th
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Answer:

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Who is the franchisee?  C.B. Management Inc.

In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.

The franchise relationship is defined by the <u>contract</u>.

Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract?  YES

Why?  A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.

Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO

What does an implied covenant of good faith and fair dealing require? That the parties act <u>reasonably</u>.

Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO

Why? Which one of these reasons is not correct? B) the actions of the parties control this issue.

A court would likely find for <u>McDonald’s</u>

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3 years ago
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Answer:

C: imagine how separatethings will lokk if they were put together in a particular way.

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 The person that has the spatial ability of visualization is able to change things around them and visualize a perfect location for them because this skill is a manifestation of their perceptions and the facility they have for remembering things, places, distances, positions, etc. They visualize the perfect place for objects.

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3 years ago
when compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions
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When compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions requires business managers to have more knowledge of the laws of other countries.

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The country of origin principle mainly aims to ensure the effective protection of the public interest in the country of origin.

Basically, the country of origin principle has the main purpose to vest exclusive jurisdiction to regulate in one Member State only.

Learn more about the country of origin principle here:-

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8 0
2 years ago
The _____________ defines the resources the solution will need to operate satisfactorily.
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The answer in the space provided is capacity plan. It is because it is the one responsible of meeting the demands in terms for the products or services by having to determine its capacity for these change to be made.

4 0
4 years ago
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