Answer:
The required adjusting entries before the financial statements can be prepared are:
Debit Note receivable $39,600
Credit Cash $39,600
<em>(To record note receivable)</em>
Debit Interest receivable $264
Credit Interest revenue $264
<em>(To record interest receivable on note - March 31)</em>
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the note is calculated as: Principal x Interest Rate x Time
In this case, the total interest revenue is $39,600 x 8%/12 x 4 months = $1,056.
Monthly interest revenue is therefore $1,056 / 4 months = $264.
A sense of urgency - in order for the business to grow, it has to have a sense of urgency and refrain from procrastination. It has to act fast and not be left behind by new business. Plan and act are the keywords.
Building a guiding coalition - a business cannot stand alone. It needs people to help it grow. We have to interact with others who may be able to help us with ideas and purpose.
Form strategic visions and initiatives - we have to know what we want in the future and must act to become that future.
Enlist a volunteer army - get someone knowledgeable and enthusiastic to start going with the future vision of the company.
Enable action by removing barriers - Have a straight vision of what you want for your business, don't look at the different direction that will just hamper your growth. Do strategies, visioning and have focus.
Sustain Acceleration - when you are gaining your goal, don't stop. Just continue to grow and make the most of every opportunity.
Institute Change - Be adaptive to the changing world. Upgrade and go with how things flow without sacrificing your goal.
I think the answer would be :
B. Online Bank, Credit Union, Traditional Bank
Online bank offer around 1.05 % interest rates and credit Union is only a little bit below that. While traditional banks only offer around 0.01 % of interest rates
hope this helps
