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serious [3.7K]
4 years ago
5

1. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6%

, 9-month note. What is the adjusting entry required if Sadowski Brick Company prepares financial statements on June 30
Business
1 answer:
Rainbow [258]4 years ago
3 0

Answer:

Debit interest expenses for $15,000

Credit interest payable for $15,000

Explanation:

Since January 1 to June 30 is 6 months, we need to calculate interest expenses for the 6 months as follows:

Monthly interest expenses = ($500,000 * 6%) / 12 = $2,500

Interest expenses for 6 months = $2,500 * 6 = $15,000

The adjusting entry required will therefore look as follws:

<u>Date            Particulars                              Dr ($)                 Cr ($)        </u>

June 30      Interest expenses                 15,000

                   Interest payable                                               15,000

<u>                    (</u><em><u>To record 6 months interest payable on note.)           </u></em><u>         </u>

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Tim, who works for Peachtree Realty, referred a buyer to a broker who works for Pinetop Realty. The referring agent is to receiv
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Answer:

$1,312.50

Explanation:

Calculation for How much was the referring agent paid

First step is to find the buyer agent amount by using the buyer's agent percentage to multiply the buyer purchased amount of the home

Using this formula

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