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
Assoli18 [71]
2 years ago
13

On November 1, 2018, ABC signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six mo

nths later on May 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. In recording the payment of the note plus accrued interest at maturity on May 1, 2019, ABC would: __________
Business
1 answer:
Kryger [21]2 years ago
6 0

Answer:

ABC

In recording the payment of the note plus accrued interest at maturity on May 1, 2019, ABC would: __________

Journal Entries:

May 1, 2019:

Debit Interest Payable $1,000

Debit Interest Expense $2,000

Debit Notes Payable $100,000

Credit Cash $103,000

To record the payment of the note plus accrued interest at maturity.

Explanation:

a) Data and Calculations:

November 1, 2018:

6% 6-month Note Payable = $100,000

December 31, 2018:

Accrued interest = $1,000 ($100,000 * 6% * 2/12) for 2 months

May 1, 2019:

Interest Expense = $2,000 ($100,000 * 6% * 4/12) for 4 months

Transaction Analysis on May 1, 2019:

Interest Payable $1,000 Interest Expense $2,000 6% Notes Payable $100,000 Cash $103,000

You might be interested in
Suppose two successive levels of disposable personal income increases from $16 to $21 billion and the change in consumption spen
Montano1993 [528]

Answer: 0.4

Explanation: MPC, that is, marginal propensity to consume is used to quantify the consumption induced. As we know that, MPC is calculated as follows :-

MPC\:=\:\frac{Chane\:in\:consumer\:spending}{change\:in\:income}

MPC\:=\:\frac{2}{21-16}

MPC\:=\:\frac{2}{5}

                 = 0.4

5 0
3 years ago
The Federal Reserve comes to the conclusion that more money must be pumped into the economy in an effort to stimulate economic g
wolverine [178]

The answer is: B) Buying securities (Bonds)

Money supply refers to the amount of money that circulated in the country. When government buy securities from the private sector, the money would be exchanged from the government's purse to the private sector's. If this occurs, the amount of money that circulated would be increased.

4 0
3 years ago
Read 2 more answers
If a corporation offers 1,000 shares of stock and you buy 300 shares:
LuckyWell [14K]

you own 30% of the shares issued.

5 0
3 years ago
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina
34kurt

Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

Beginning Inventory $57,800

Plus: Net purchases $120000

Freight-in                     $2,700

Cost of Goods Available for Sale $180500

less: Cost of Goods Sold

Net Sales$180000

Less Estimated Gross Profit $81000

Estimated Cost of Goods Sold $99000

Estimated Inventory before Theft 81500

Less: Stolen Inventory 8,100

Estimated Ending Inventory 73400

Gross profit $180000*45%=$81000

8 0
3 years ago
At the beginning of the current year, Sandy Brewer had a zero basis in her 38 shares of stock in Lindlee, an S corporation, a ze
Alona [7]

Answer:

As in her worthless note,Sandy has a zero adjusted basis. Her bad debt deduction is Nil according to Section 166 (b).

Section 166(g)(1) states that her capital loss realized on the deemed sale of this stoke is also nil because of zero adjusted basis in her worthless stock.

According to Reg. Sec.1.1366-2(a)(5) if all of her stock is disposed by an S corporation shareholder and loss carryforward attributable to the Section 1366 (d) basis. Limitaitons are permanently disaalowed.

Hence, her $7,400 ordinary loss carryforward can never be deducted by Sandy.

Sandy has no 2012 tax consequences from worthlessness of her Lindlee investments

7 0
3 years ago
Read 2 more answers
Other questions:
  • 1. Electricity is defined as<br> a. Power<br> b. Energy<br> c. Flow of electrons<br> d. Movement
    8·2 answers
  • In the context of factors that influence the motivation to learn, when an organization seeks to convince employees that they can
    10·1 answer
  • Which of the following is true of flow shop processes? a. They use different sequence of processing steps for different orders.
    12·1 answer
  • Which of the following business combinations is a vertical integration? A. The corner gas station buys the competitor across the
    5·1 answer
  • Larry wants to hold an event that covers Dual Special Needs Plans (SNP). He will use the slide presentation provided by UnitedHe
    7·1 answer
  • Bertrand is an avid supporter of protectionism. His primary platform is the idea that the United States imports too many foreign
    12·1 answer
  • Jane and Bart organized food truck business- Just Best Food Inc (JBF Inc.). JBF Inc. decided to follow accrual method of account
    13·1 answer
  • MCQ: An advantage of 'forced distribution method' is
    8·1 answer
  • Which of the following are examples of limited resources on the part of consumers?
    13·2 answers
  • A stock has an annual dividend of $10.00 and it is expected not to grow. It is believed the stock will sell for $100 one year fr
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!