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Olegator [25]
3 years ago
14

Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.

The note is signed on November 1 in the amount of $75000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest
Business
1 answer:
ladessa [460]3 years ago
3 0

Answer:

Interest expense --------$1,500

Interest payable-------------- $1,500

Explanation:

Given the following ;

Amount of note signed = $75,000

Annual interest rate = 12% = 0.12

Date signed = November 1

Calculate interest expense to be made in the adjusting entry by December 31 :

NOTE: No entries have been made previously for the interest expense

Monthly Interest = (Amount × rate) ÷ 12

Monthly interest = ($75,000 × 0.12) ÷ 12

Monthly interest = $9000 ÷ 12 = $750

November 1 to December 31 = 2 months

$750 × 2 = $1500

Interest expense = $1,500

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Answer: The answer is b

Explanation:

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Invariably, we are saying that it high time for Trend Inc, should spend proportionately less on advertising than on newer line. It should now spend more money on bringing of new product into the market than spending more on the advertisement of the sport shoes because at a certain point the demand for the old product will fall when diminishing return must have set in on the product demand.

5 0
3 years ago
Blank (deleted) nothing to answer...
Sati [7]

Answer:

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Explanation:

5 0
2 years ago
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation of cocaine into the United Stat
nikklg [1K]

Answer:

The Price of Cocaine would rise drastically

Explanation:

If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:

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Thus, price of cocaine will rise drastically as an outcome of such a move.

3 0
3 years ago
2. Ernesto purchased a used car for $6800. He paid 64% sales tax. How much tax did he pay?​
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you own 100 shares in each of three companies, each company pays a dividend. gillete pays 1.15 per share in dividends, general e
Elena-2011 [213]

Answer:

$278

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100 * .84 = $84

$278

Hope this helps

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2 years ago
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