Answer:
The journal entry to be recorded for the payment of the note on date of maturity is shown below:
Explanation:
The journal entry to be recorded for the payment of the note on date of maturity is as follows:
Notes Payable A/c..........................Dr $9,000
Interest expense A/c......................Dr $148
Cash A/c..........................................Cr $9,148
Being payment of the note payable is reported on the maturity date
As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.
Working Note:
Interest expense = $9,000 × 10% × 60/ 365
Interest expense = $148
I believe your answer is A: Unearned Revenue.
Because, if a business has received cash, in advance of services performed, and credits a liability account, the adjusting entry needed, after the services are performed, will be debit Unearned Revenue and credit Cash.
Mark brainlest please
Answer:
The amount of tax will be $3
Tax Burden on consumer is $2
Tax burden on producer ( in case you want to know) will be $1
Check the image below.
Tax is equal to the difference between the price actually paid by the buyer and the price actually received by the seller. Tax= Price paid by buyer-Price received by seller Tax= $8-$5 Tax = $3 Thus the tax computed is $3 per case.
Answer:
a. Debit Accounts receivable for $600
Explanation:
As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -
Accounts receivable (Debit) $600
Revenue (Catering) (Credit) $600
Accounts receivable is debit because the company owes the amount from the customers.
