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Mekhanik [1.2K]
3 years ago
7

On March 1, 2021, Bearcat lends an employee $16,000. The employee signs a note requiring principal and interest at 12% to be pai

d on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31.
Business
1 answer:
kramer3 years ago
8 0

Answer:

Given that,

Amount of money lend to employees on March 1, 2021 = $16,000

Rate of interest = 12 percent

Interest amount and principal to be paid on February 28, 2022.

Interest is accrued on December 31,

Time period = From March 1, 2021 to December 31, 2021

                    = 10 months

Accrued Interest amount = Principal amount × Interest rate × Time period

                                          = $16,000 × 0.12 × (10 ÷ 12)

                                          = $1,600

Therefore, the adjusting journal entry is as follows:

Interest receivable A/c Dr. $1,600

         To interest income                $1,600

(To record the interest on amount given to employees is accrued and adjusted)

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Answer:

In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplified based on the results of a much more complicated model.) Demand is given by QD = 105 − 1.5P where QD is in millions of tires per year. Supply is QS = 1.5873P − 15.87.

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The amount by which the total benefits to consumers exceed their total expenditure is called _____, and if the price is b, is de
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3 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
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Answer:

$75

Explanation:

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Ke = risk free rate of return + beta×(market portfolio - risk free rate of return)

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= 14%

= 0.14

Now using the constant-growth DDM model :

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Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year o
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Answer:

<u>Horizontal statemtent:</u>

         Assets                      =   Liabilities    +    Equity

1)       30,000                      =        0            +   30,000

2) 18,000- 18,000              =        0            +      0

3)        17,000                     =        0            +   17,000

<u>Cash flow:</u>

+30,000 Financing

Operating

collected from customer 32,000

paid to suppliers             (18,000)

           net                         14,000

total cash flow                44,000

Income statment

sales revenue 32,000

COGS              (15,000)

income              17,000

Total assets:  47,000 (44,000 cash + 3,000 inventory)

Explanation:

assets:

1) +30,000 cash from common stock

2) 18,000 inventory - 18,000 cash = 0 effect on total assets

3) 32,000 cash - 15,000 inventory = 17,000

total assets: 30,000 + 17,000 = 47,000

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Answer:

A.

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