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4 years ago

On November 1, Wright Co. borrowed $20,000 cash from Third Bank by signing a 90-day, 6% interest-bearing note.

1 answer:

4 0

On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.

Explanation:

On November 1, Wright Co. borrowed $20,000 cash from the Third Bank by signing a 90-day, and 6% of interest-bearing note.

On December 31, it was recorded an adjusting entry to interest expense of $200.
On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
bonds,convertible debt, loans or lines of credit
The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
Interest expense is an amount determined by the interest rate on an account.

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The correct answer is (A)

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4 years ago

If the fed wanted to shift to a restrictive monetary policy and reduce the money supply, it could what?

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Answer: The fed can reduce they money supply by increasing the discount rate.

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3 years ago

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In the given case, Dora gained information about the best sunscreen from her friend. Thus, she has some relation with the source of information.

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3 years ago

Icu window, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with ten years to maturity that

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Pre-tax cost of debt is calculated as -

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Coupon payment = 9.6 % / 2 * 1000 = $ 48

Face Value = 1000

Price = 113.5 % * $ 1000 = $ 1135

Number of periods = 20 (i.e. 10 years *2 )

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3 years ago

Which statement best explains why producers conduct market research? Predicting what the government will do helps producers redu

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Answer:

Knowing what consumers want helps producers make more money.

Explanation:

The statement that best explains why producers conduct market research would be that Knowing what consumers want helps producers make more money. If the producers know exactly what the consumers want and how much then they can easily create those products knowing that they will sell every last one of them. Therefore eliminating most of the risk involved with production and generating more profit.

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3 years ago