Well, yes, is that's the question
Answer:
uh ok... whats the question?
Explanation:
i will help u after u tell meh.
Answer:
d. $1,200
Explanation:
The computation of the interest expense is shown below:
= Principal × rate of interest × number of days ÷ (total number of days in a year)
= $80,000× 6% × (90 days ÷ 360 days)
= $1,200
We simply apply the simple interest formula
Since the number of days and the total number of days are given so we considered the same for the computation part.
Answer:
The Journal entries are as follows:
(i) On March 1,
Prepaid insurance A/c Dr. $24,600
To cash A/c $24,600
(To record the purchase of insurance in advance)
(ii) On December 31,
Insurance expense A/c Dr. $20,500
To Prepaid insurance $20,500
(To record the insurance expense)
Workings:
Insurance expense:
= $2,050 × 10 months (From March 1 to December 31)
= $20,500
