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
V125BC [204]
3 years ago
11

On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $45,000. Alan made the appropriate year-end

accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made
Business
1 answer:
shepuryov [24]3 years ago
8 0

Answer:

Debit Notes Payable $45,000; debit Interest Payable $750; debit Interest Expense $750; credit Cash $46,500

Explanation:

The journal entry is given below:

Notes payable $45,000  

Interest payable ($45,000 × 10% × 60 ÷ 360) $750  

Interest expense ($45,000 × 10% × 60 ÷ 360) $750  

            To Cash $46,500

(Being payment of notes payable is recorded)

here note payable, interest payable, interest expense is debited as it increased the expenses and decreased the liabilities while on the other hand the cash is credited as it decreased the assets

You might be interested in
Taxes represent __________ of the business. Multiple Choice an equity liability a cash inflow a cash outflow an accounts receiva
Eduardwww [97]

The taxes that are being paid by a business firm represents: C. a cash outflow.

Taxation can be defined as the involuntary and compulsory fees that are usually levied on individuals or business firms (entities) by the government, so as to generate revenues which are used in funding public institutions and activities.

Basically, these taxes that are being paid by individuals or business firms (entities) is considered as a cash outflow because it represents money that are flowing out of their accounts.

In conclusion, an amount of money that is flowing out of an account such as taxes is referred to as a cash outflow.

Read more: brainly.com/question/16477816

5 0
2 years ago
Government purchases are spending by the government on​ goods, services, and factors of production. Government expenditures repr
Law Incorporation [45]

Answer: A. there has been a major increase in the amount of transfer payments the government makes through programs such as Social Security and unemployment insurance.

Explanation:

Since the 1950s, the US government budget for Transfer Payments to Social Security Programs and Unemployment benefits has increased tremendously.

The main transfer payments are Disability and Pension/ Retirement payments and they have been on the rise since the 50s.

These Transfer Payments are both a show of Humanitarianism as well as a form of Economic Investment as they help stimulate the Economy during times or Economic Distress by pouring money into it.

A typical example would be the $1,200 that Congress voted to provide direct cash payments of which totaled around $250 billion in March this year to help Americans who were hit hard by the lockdowns that have crippled much of the American economy.

6 0
3 years ago
A certain bank assigns one unique number to each savings account. The amount of savings in each account depends on how much the
fenix001 [56]
A certain bank assigns one unique number to each savings account. The amount of savings in each account depends on how much the owner deposits into the <span>account. The interest paid on each account depends on how much money is in the account. The relation that is not a function is that "</span><span>interest paid, amount in savings account."</span> 
8 0
2 years ago
Read 2 more answers
A company has the following liabilities at year end: Mortgage note payable; $16,000 due within 12 months $355,000 Short-term deb
Grace [21]

Answer:

The amount that the company should include in the current liability section of the balance sheet is $16,000

Explanation:

The short-term debt that the company is refinancing with long-term debt is non-current and  deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.

Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000

4 0
3 years ago
If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,00
fiasKO [112]

Answer:

Option (a) is correct.

Explanation:

Here, shoes are normal goods as there is a positive relationship between the income level of the consumer and the quantity demanded for shoes. It can be seen that as the income of the consumer increases from $19,000 to $21,000 then as a result the quantity of pairs of shoes demanded increases from 9 to 11 pairs. Normal goods are generally have positive income elasticity of demand.

Therefore, the shoes are normal goods in this case.

7 0
2 years ago
Other questions:
  • Robin works for a small firm with only enough money budgeted to use one test to help with hiring decisions. What kind of test wo
    9·1 answer
  • The levels of organisational culture are:
    8·1 answer
  • Wanda, Derek, and Mitchell formed B. Flowers, LLP three years ago. A year ago, Derek and Mitchell decided that the company was r
    5·1 answer
  • Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.
    15·1 answer
  • The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of it
    11·1 answer
  • For an investment to be classified as a current​ asset, A. the investment must be easily convertible to cash. B. the investor mu
    5·1 answer
  • Each of the following would be reported under operating activities except Select one: a. cash payments for interest expense. b.
    8·2 answers
  • 3M's Cubitron II, described as "an industrial abrasive that cuts faster, lasts longer, sharpens itself, and requires less elbow
    12·1 answer
  • On June 27, 2021, Cara Van Travel distributed to its common shareholders 510,000 outstanding common shares of its investment in
    7·1 answer
  • Formal communication in organizations follows the chain of command and is seen as official.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!