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
Kisachek [45]
4 years ago
10

Melanie Corp. borrowed $124,000 cash on September 1, 2016, and signed a one-year 6%, interest-bearing note payable. The interest

and principal are both due on August 31, 2017, Assume that the appropriate adjusting entry was made on December 31, 2016 and that no adjusting entries have been made during 2017. Which of the following would be the required journal entry to pay the note on August 31, 2017?
A. Notes payable 124,000, Interest expense 7,440, Cash 131,440
B. Interest expense 4,960, Interest payable 2,480, Notes payable 124,000, Cash 131,440
C. Interest expense 7,440, Cash 7,440
D. Interest payable 2,480, Notes payable 124,000, Cash 126,480
Business
1 answer:
zlopas [31]4 years ago
7 0

Answer:

B is the correct option

Explanation:

On August 31 2017,which is the expiration date of the loan of $124,000,the actual loan amount needs to be paid alongside total interest due on the loan.

However,on 31st December,four month period interest would have been calculated debited to interest expense and credited to interest payable i.e$124000*6%*4/12=$2480

On 31st the balance of interest needs to be calculated as:$124,000*6%*8/12=$4,960

Hence the correct option should the following entries:

Dr Notes payable    $124,000

Dr interest payable     $2480

Dr interest expense    $4,960

Cr cash                                      $131440

You might be interested in
Any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner
viva [34]

Answer: Apartment Sharing Agent

Explanation: An Apartment Sharing Agent is any person who, for a fee, arranges, conducts, coordinates, handles or causes meetings between a customer and the current owner or occupant of legally occupied real property, including apartment housing, who wishes to share that housing with one or more individuals. The agent must be registered with Division of licencing office and must maintain a trust account with a sum of $2,500

3 0
3 years ago
What is The Humane Society of North Central Florida's mission? *
faust18 [17]

Answer:

Our mission is to build an ecologically sustainable and humane world for all animals.

Explanation:

I hope it help u

8 0
3 years ago
Department E had 4,000 units in Work in Process, that were 40% completed at the beginning of the period, at a cost of $12,500. 1
garri49 [273]

Answer:

Total equivalent units= 17,250 units

Explanation:

<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked. </em>

Equivalent units = Degree of completion× units of inventory

Item                           units                                        Equivalent unit

Completed                 15,000           100%× 15,000 =  15,000

Closing inventory        3,000            75%× 3,000 =     <u>2,250 </u>

Total equivalent units                                                   <u>  17,250</u>

Total equivalent units= 17,250 units

5 0
3 years ago
How do economists sometimes measure physical capital in a country?
Oksanka [162]
Economists can measure physical capital in a country by unconventionally assessing the size of the employed population and their level of education which though not necessarily a conventional type of physical capital still it is essential to activate the inanimate physical capital. Conventional physical capital could be natural resources like forests, mineral deposits, and fisheries but more likely would mainly include man-made machines like tractors for farms, trucks for trucking produce, trains, factories, mine buildings and crushers etc.
4 0
4 years ago
Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and c
Elenna [48]

Answer:

True.

Explanation:

Managerial accounting involves managers using accounting information to better inform themselves before making business decisions. It involves analysing, interpreting and communicating financial data to managers to aid in achievement of organisation's goals.

Managerial accounting is for internal use in the business. Data is modified to meet specific need of the end-user. For example a manager may want to see sales figures for a quarter compared to business target. This will give an idea if the business is meeting it's objectives.

4 0
4 years ago
Other questions:
  • Which rating classification is typically used in the senior marketplace so that policies can be issued without a medical exam?
    14·1 answer
  • On September 21, 2017, Umbrella Company announced a 3 for 1 stock split. After the split, the company will have about 24.6 milli
    14·1 answer
  • ___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating
    9·1 answer
  • Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending
    7·1 answer
  • Which of the following are important safety precautions when banking online? Select ALL that apply. Select a password that is ea
    14·1 answer
  • The entry to record the receipt of payment within the discount period on a sale of $1500 with terms of 2/9, n/30 will include a:
    7·1 answer
  • Who do you think would be a better President<br> A. Trump or B. Biden
    9·2 answers
  • Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1
    9·1 answer
  • The common stock of Pedestrian Automotive has a beta of 0.89 and a standard deviation of 15.8 percent. The market rate of return
    9·1 answer
  • when the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually for a selling price of $
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!