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strojnjashka [21]
3 years ago
11

On july 1, rainbow painting service borrows money from eighth national bank on a 8-month, $40,000, 5% note. interest and princip

al is all due on february 28. assuming any prior monthly journal entries were not made, what journal entry must rainbow painting service make on december 31 before financial statements are prepared?
Business
1 answer:
Kobotan [32]3 years ago
4 0
Given:
July 1 borrowed money from eight national bank on 8-month, 40,000, 5% note.
Interest and principal is all due on February 28 
No journal entries were made. 

Recognizing cash and notes payable.
                               Debit     Credit
Cash                      40,000
  Notes Payable                   40,000

Interest on Notes payable
Interest Expense      1,333
   Interest Payable                   1,333

Recognizing interest owed but not yet paid.

40,000 * 5% * 8/12 = 1,333

On February:
Notes Payable       40,000
Interest Payable       1,333
    Cash                                 41,333
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Answer:

A)not negate the logical basis for trade in the Ricardian model.

Explanation:

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The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the

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It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.

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The forecast for the third quarter is 2,000 units; the seasonal index for the quarter is 1.18. What are the seasonally adjusted
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3 years ago
David’s friend, Keanu, has hired a financial planner for advice on retirement. Considering Keanu’s current expenses and expected
tatiyna

Answer:

28.85

Explanation

Keanu has decided to save a fixed amount of 70,000 for a given period. We would need to calculate the number of years to achieve 7,796,223 using the FVIFA formula (Future value interest for an annuity)

Fixed payment× FVIFA=Future value

<em>FVIFA</em> = \frac{(1+r)^{n} - 1}{r}

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