1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lera25 [3.4K]
2 years ago
10

The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for

$8,000 to Hyatt Company for merchandise. Dec. 1 Towell signed a 120-day, 10% note at the bank for $12,000. Dec. 20 Towell gave Barr, Inc., a 60-day, 10%, $12,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.
Business
1 answer:
Pani-rosa [81]2 years ago
3 0

Answer: See explanation

Explanation:

The general journal entries necessary to adjust the interest accounts at December 31 will be:

1. December 31:

Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102

Credit: Interest payable = $102

(To accrue interest expenses for the note issued on November 10).

2. December 31:

Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120

Credit: Interest payable = $120

(To accrue interest expenses for the note issued on December 1)

3. December 31:

Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67

Credit: Interest payable = $36.67

(To accrue interest expenses for the note issued on December 20).

You might be interested in
Listed below are ten independent situations. For each situation indicate (by letter) whether it will create a deferred tax asset
valkas [14]

Answer:

1. Advance payments on insurance, deductible when paid.

Indication: Deferred tax liability (L)

2. Estimated warranty costs; tax deductible when paid.

Indication: Deferred tax asset (A)

3. Rent revenue collected in advance; cash basis for tax purposes.

Indication: Deferred tax asset (A)

4. Interest received from investments in municipal governmental bonds.

Indication: Neither (N)

5. Prepaid expenses, tax deductible when paid.

Indication: Deferred tax liability (L)

6. Net operating loss carryforward.

Indication: Deferred tax asset (A)

7. Net operating loss carryback.

Indication: Neither (N)

8. Straight-line depreciation for financial reporting; MACRS for tax purposes.

Indication: Deferred tax liability (L)

9. Organization costs expensed when incurred; tax deductible over 15 years.

Indication: Deferred tax asset (A)

10. Life insurance proceeds received upon the death of the company president.

Indication: Neither (N)

3 0
3 years ago
As the Board of Governors of the American Red Cross considers planning, one option is to make strategic plans and then direct ma
n200080 [17]

Answer:

a. the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership.

Explanation:

If the organization is a dynamic system, it means that conditions change fast and often. In this case, a plan developed by top-management may not be adequate enough a month, or even a week later after being devised.

Therefore, it's best to allow frontline managers, who have knowledge about daily operations and conditions, to develop their own plans (with the assistance of the planning specialists), and to modifiy those same plans if needed.

3 0
3 years ago
Which of the following is NOT a major benefit of international trade?
mafiozo [28]

Answer:

Countries improve efficiency through producing goods in which they have the lowest opportunity cost.

Explanation:

8 0
3 years ago
Read 2 more answers
TETE
IrinaVladis [17]
That answer is b hope this helps
4 0
2 years ago
All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except Select one: A.
bearhunter [10]

Answer: B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals.

Explanation: Market-based transfer pricing is perhaps the easiest form of transfer pricing when it comes to determining the price that will be paid between divisions of the same company. It uses the normal market rate that would be paid if the goods were bought on the open market.

Transfer pricing helps in reducing duty costs by shipping goods into countries with high tariff rates at minimal transfer prices so that the duty base of such transactions is fairly low.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Match each word with the phrase that best defines it
    5·2 answers
  • A medical assistant is moving heavy medical equipment. To limit risk of injury, she should use proper body (fill in the blank)
    7·1 answer
  • Whats better, be an hour early to work, or 15 minutes late?
    5·1 answer
  • Support staff in the office of the president include who?
    10·1 answer
  • Match the different types of incomes to their sources.
    5·2 answers
  • The person who receives financial protection from a life insurance plan is called
    10·2 answers
  • Auctio sells sprockets in a perfectly competitive market. Below are its short-run total variable costs at different output level
    6·1 answer
  • Why do companies have to study their environtment first before venturing into new businesses ?
    7·2 answers
  • Which supply chain process focuses on the transformation of inputs into outputs?.
    10·1 answer
  • What will help a person with power of attorney make good decisions?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!