Answer:
Annual interest rate= 3%
Explanation:
Giving the following information:
Present value= $9,850
Future value= $10,000
Number of days= 182
<u>First, we need to calculate the daily interest rate. We will use a financial calculator (the formula is incredibly difficult to use):</u>
<u></u>
Function= CMPD
n= 182
I%= SOLVE = 0.0083
PV= 9,850
FV= -10,000
<u>Now, the annual interest rate:</u>
Annual interest rate= 0.0083*365= 3.02 = 3%
I think it’s C, please forgive me if I’m wrong
Based on the amount paid by Olive Company for the two year period, the adjusting entry on December 31 would be a debit to an expense and a credit to prepaid expense for $2,050.
<h3>What would be the adjusting entry?</h3>
Based on the accrual method, only costs for the year can be recorded as expenses.
If any costs are for other periods, those costs would be credited to prepaid expenses.
The expense for this year for management services would be:
= Number of months from July to December x Amount paid / number of months in contract
= 6 months x 8,200 / 24 months
= $2,050
In conclusion, expenses will be debited $2,050.
Find out more on prepaid expenses at brainly.com/question/9270086.
The answer for this question is: Purchasing plant and equipment that worth more than the cash that they have.
By doing this, the company will be forced to find some funds that is not included in Company's budget, and the easiest method to do that is by searching for an emergency loan or by selling other assets that are not crucial for their operation.
