The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.
Answer:
The stock dividends are not taxable in 2009 for this case
Explanation:
A. According to the US taxatation regulation in this particular case the stock dividend is not taxable because it is <em>pro rata</em> to all the shareholders.
<em>pro rata means proportional.</em>
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Answer:
Given that,
Company's bank reconciliation at June 30 included interest earned = $150
So, it must be cash must be debited and interest revenue must be credited in the accounts.
Therefore, the journal entry is as follows:
Cash A/c Dr. $150
To Interest revenue $150
(To record the interest revenue earned)
