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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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Subordinated bond is also known as junior Securities or subordinated debt are bonds that are lower in rank compared to other bonds,a subordinated bond holder is only paid when other senior bond have been completely paid out.

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How do information systems improve relationships between businesses and customers?
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I think the answer is A
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First, regardless of the strategy, _____ storage and _____ storage must be secured.
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The correct answer is offsite and onsite.

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2 years ago
The gross earnings of the factory workers for Larkin Company during the month of January are $91,000. The employer's payroll tax
cestrela7 [59]

Answer:

Explanation:

The journal entry is shown below:

(a) Factory Labor/Expenses A/c Dr $103,800

        To Factory wages payable               $91,000

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         To Fringe benefits payable              $5,100

(Being labor expenses are recorded)

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Because of the wealth effect, a rising aggregate price level _____ the purchasing power of wealth and therefore _____ the aggreg
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Because of the wealth effect, a rising aggregate price level "reduces" the purchasing power of wealth and therefore "reduces" the aggregate quantity of output demanded.

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According to the wealth effect, a behavioural economic hypothesis, customers will spend more money even if their income stays the same.

The effect of wealth effect on aggregate demand is-

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To know more about the aggregate demand and aggregate supply, here

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