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aniked [119]
3 years ago
12

Universal Travel Inc. borrowed $498,000 on November 1, 2021, and signed a 12-month note bearing interest at 7%. Interest is paya

ble in full at maturity on October 31, 2022. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of
Business
1 answer:
Ivenika [448]3 years ago
5 0

Answer: $2,905

Explanation:

The total interest that will be paid on the note is:

= 498,000 * 7%

= $34,860

This interest will have to be apportioned monthly over the year. The monthly interest (which will also be the December interest) is:

= 34,860 / 12 months

= $2,905

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Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory
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