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Alex_Xolod [135]
3 years ago
8

On August 1, 2021, Turner Manufacturing lends cash and accepts a $16,000 note receivable that offers 10% interest and is due in

nine months. How would Turner record the year-end adjustment to accrue interest in 2021? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
Business
1 answer:
professor190 [17]3 years ago
3 0

Answer:

31 Dec 2021  Interest Expense              $667 Dr

                           Interest Payable                 $667 Cr

Explanation:

The bond will pay the interest at maturity. However, following the accrual basis of accounting requires to match the revenue and expenses for a period and requires such transactions to be recorded in their respective periods. The year end adjusting entry will be made on 31 December 2021.

The interest expense for the period from August to December, 5 months, will be recorded on 31 December 2021 as interest expense and credit to interest payable.

The interest expense is = 16000 * 0.1 * 5/12  =  $666.67 rounded off to $667

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Bill took out a $100,000 non-recourse loan and bought an apartment building. The building is not security for the loan. Bill spe
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Bill has $25,000 at-risk and he can also deduct $25,000 from his income due to the losses associated with his rental activity.

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Bill's at-risk $25,000 are equal to the money he spent on house repairs.

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4 years ago
our grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem
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Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's resource market.

<h3>What is the resource market?</h3>

The term "resource market" refers to a market that provides goods and services to businesses, organizations, and firms in exchange for money. Markets that offer firms the resources they require to deliver the products or services they offer are known as resource markets.

One of the three main categories of macroeconomic markets is the resource market, sometimes known as the factor market. Financial markets and product markets are the other two. The macroeconomic analysis of full employment and unemployment must take into account resource markets.

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To know more about resource market refer to: brainly.com/question/18310262

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3 years ago
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A U.S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its ex
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Answer:

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The difference between the present value of cash inflows and the present value of cash outflows over a period is referred to as the net present value (NPV).

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