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Veseljchak [2.6K]
3 years ago
13

On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent

ries have been recorded, ABC's adjusting entry at December 31 would include a:________.
a. debit to Interest Expense of $3,000.
b. debit to Interest Expense of $2,250.
c. debit to Interest Expense of $1,000.
d. debit to Interest Expense of $750.
Business
1 answer:
scZoUnD [109]3 years ago
7 0

Answer:

c. debit to Interest Expense of $1,000.

Explanation:

The adjusting entry is as follows:

Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000

     To Interest payable $1,000

(Being the interest expense is recorded)

Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities

Therefore the correct option is c.

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You go to a local mechanic to get your tires changed. The tires cost $300. There is a 6% sales tax, but you get a 10% discount.
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Answer:

X= cost of the tires

t(x)= (.9*X+10)*1.06

If x = 300, then the costo is (.9*300 + 10) *1.06 = (270 + 10)* 1.06 = 280 * 1.06 = $296.80

If the tax is appplied first and then the discount is applied, your formula would be:

t(x) = (x+10)*1.06 - (-1*x)

If x is equal to $300, the cost is $310 * 1.06 - .1*300 = $328.60 - $30 = $298.60

you pay mor if the tax is applied first.

Your discounted price of .9*x stems from x - .10*x which becomes (1-.10)*x wich becomes .9*x

Your cost with tax stems from y + .06*x =(1+.06)*y = 1.06*y

Y is the amount of the cost that is taxed.

if the discuount is applied first, then y is equal to (.9*x + 10)

if the discount is applied after, then y is equal to (x+10).

The difference is the tas on the discount

Explanation:

7 0
3 years ago
Read 2 more answers
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