Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
Answer:
the correct answer is
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Answer and Explanation:
The adjusting entry is as follows
Interest receivable Dr ($18,600 × 10% × 42 days ÷ 360 days) $217
To Interest revenue $217
(being the interest revenue is recorded)
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
The 42 days are calculated from Nov 19 to Dec 31
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