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vfiekz [6]
3 years ago
14

Mama's Pizza Shoppe borrowed $6,200 at 12% interest on May 1, 2021, with principal and interest due on October 31, 2022. The com

pany's fiscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 2021
Business
1 answer:
max2010maxim [7]3 years ago
3 0

Explanation:

The adjusting entry is as follows

Accrued interest expense Dr $124

     To Interest payable $124

(Being the accrued interest expense is recorded)

The computation is shown below:

= Borrowed amount × interest rate × given months ÷ total number of months in a year

= $6,200 × 12% × 2 months ÷ 12 months

= $124

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Answer:

TRUE

Interest income received by a cash basis taxpayer is generally reported in the tax year it is received.

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Mariulka [41]

Answer:

individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.

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Q 8.3: When would a credit card holder be entitled to lower interest charges? A : When the card company calculates finance charg
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Learn more about the business here: brainly.com/question/24448358

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