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SVETLANKA909090 [29]
3 years ago
8

A gift shop signs a three-month note payable. The note is signed on November 30 in the amount of $50,000 with annual interest of

12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date? *
Business
2 answers:
aliina [53]3 years ago
5 0

Answer:

the gift shop must recognize 31 days of accrued interest payable, total interest = principal x interest rate x time passed

= $50,000 x 12% x 31/365 days = $509.59

the adjusting entry should be:

December 31, accrued interest on note payable

Dr Interest expense 509.59

    Cr Interest payable 509.59

alexdok [17]3 years ago
4 0

Answer:

The adjusting entry to be made on December 31 for the interest expense accrued to that date is:

                               Debit  Credit

Interest expense 1,000

Interest payable  1,000

Explanation:

According to the given data we have the following:

Amount of Note = $ 50,000

Annual Interest = 12 % per annum

Period = 3 Months

Period Expired = 2 Months (i.e. November and December)

Therefore, The amount of outstanding interest is computed as $ 50,000 x 12/12 x 2 x 1/100 = $ 1,000

The adjusting entry to be made on December 31 for the interest expense accrued to that date is:

                               Debit  Credit

Interest expense 1,000

Interest payable  1,000

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3 years ago
S= 2( lw + lh + wh) Solve for w <br><br> Please show your work
charle [14.2K]

You said that                             S     =  2(lw + lh + wh)

Divide each side by  2 :             S/2  =  lw + lh + wh

Subtract  'lh'  from each side:    S/2 - lh = lw + wh

Factor the right side:                S/2 - lh  =  w(l + h)

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Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,0
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By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above

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