Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month note. The entry made
by Guarantee Company on January 1 to record the proceeds and issuance of the note is A.Interest Expense 12,000 Cash 138,000 Notes Payable 150,000 B. Cash 150,000 Notes Payable 150,000 C. Cash 162,000 Interest Expense 12,000 Notes Payable 150,000 D. Notes Payable 120,000 Interest Payable 7,200 Cash 120,000 Interest Expense 7,200
This entry would be made in the books of Guarantee Company. As the interest has not yet accrued so no entry regarding the interest expense or interest payable would be made.
Choice A is not correct because it accounts for interest expense which has not yet accrued from the cash received.
Choice C is also incorrect because the actual amount of cash received is $ 150,000.
Choice D is also incorrect because Cash is debited with an increase and liabilities increase with a credit and this is reverse.
Explanation: In order to achieve a high rating on the Economic Freedom of the World Index, a country must provide for evenhanded protection of private property and rely primarily on open markets and voluntary exchange to coordinate economic activity. These options are outlined in choice a.
The way each instrument be changed if the fed wished to decrease the money supply is the Fed should conduct : - Open market sales - Raise discount rates - Raise interest paid on reserves. This will attract more saving from the people.
The accountant belongs to the UPPER MIDDLE CLASS. Upper middle class are typically made up of well educated professionals with college degrees and comfortable incomes. Social class are usually defined by means of education, occupation and income.
Implicit promises are those promises that are made but not clearly stated and thus is not understandable. Therefore, in advertisements that make implicit promises, very often the customers fail to analyze the complete message and return frustrated after their expectations are not met.