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hjlf
3 years ago
15

Universal Travel Inc. borrowed $509,000 on November 1, 2018, and signed a 12-month note bearing interest at 6%. Interest is paya

ble in full at maturity on October 31, 2019. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2018, in the amount of:
Business
1 answer:
matrenka [14]3 years ago
5 0

Answer:

$5,090

Explanation:

The matching principle in accounting requires use to record incomes and expenses in the period in which they occur or incur.

Therefor, Universal Travel Inc. should report interest that expired between November 1, 2018 and December 31, 2018 as at December 31, 2018 report

Interest payable calculation :

Period = November 1, 2018 to December 31, 2018,

           = 2 months expired

Annual interest = $509,000 x 6% x 12/12

                          = $30,540

Interest payable = $30,540 x 2/12

                            = $5,090

Conclusion :

Interest payable at December 31, 2018 should be reported as $5,090

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Answer:

c) is the same along both curves.

Explanation:

Two straight-line PPFs have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis is the same along both curves.

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3 years ago
Using the information below calculate the ending total asset of Lisa Inc.  Lisa Inc raises $3,000 of shareholders’ equity.  Li
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Answer:

The ending total asset is $3,800

Explanation:

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 Lisa Inc purchases a building worth $300 for cash. Won´t modifies the assets ,  decrease cash but increase buildings

 Lisa Inc takes out a loan for $500 and receives cash. Increase assets (cash) , increase Liabilities (Accounts Payable)

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6 0
3 years ago
Which of the following is true about the studies reported by Norton, Mochon, and Ariely (2012)? (Answer: Labor leads to more lov
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The answer is already provided in the question.

3 0
3 years ago
A company assigns overhead cost to completed jobs on the basis of 113% of direct labor cost.the job cost sheet for job 313 shows
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A) total manufacturing cost
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49,600÷1,600=31

Hope it helps!

4 0
3 years ago
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