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
iren [92.7K]
3 years ago
9

Universal Travel, Inc. borrowed $502,000 on November 1, 2021, and signed a twelve-month note bearing interest at 6%. Principal a

nd interest are payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.) Multiple Choice $30,120. $7,530. $25,100. $5,020.
Business
2 answers:
JulsSmile [24]3 years ago
6 0

Answer: Interest = $5,020

Explanation:

Interest  is given as Principal x Rate   X Time

= $502,000  x 6% x 2/ 12 ( Because of the duration from November 1st to December 31st  )

=$5,020

And would be recorded in the journal entry

Date                   Accounts and explanation             Debit               Credit

Dec 31st, 2021      Interest Expense                        $5,020

               Interest Payable                                                                   $5,020  

vampirchik [111]3 years ago
4 0

Answer:

Interest payable to be reported on 31 December 2021 will be $5020

Explanation:

Following the accrual principle of accounting, we record transactions on the basis of matching the revenues and expenses and recording them in the particular period to which they relate to and occur rather than in the period when cash is received or paid. We will make an adjusting entry on 31 December to record the interest expense and interest payable that relate to year 2021.

Interest expense 2021 = 502000 * 0.06 * 2/12 = $5020

The entry on 31 December 2021 will be,

Interest expense     5020 Dr

     Interest Payable       5020 Cr

You might be interested in
Over the last several decades, power in supply chains has increasingly been shifting to?
Masja [62]

Over the last several decades, power in supply chains has increasingly been shifting to retailers.

A retailer, sometimes known as a merchant, is a business that sells products directly to customers, such as groceries, vehicles, or apparel, with the intention of making a profit. This business may run both online and in a physical location.

The supply chain's consumer-facing component is represented by retailers, with whom most consumers have regular interactions. They are available in numerous varieties, designs, and sizes.

A producer, wholesaler, or another distributor often sells their products to retailers, who subsequently resale them to the general market. Large retailers like Walmart and Target acquire products in bulk from producers or wholesalers, but local grocers or tiny, family-run pharmacies can also buy from these places or from smaller suppliers.

To learn more Retailers refer to:

brainly.com/question/28066195

#SPJ4

7 0
2 years ago
When it comes to investing, what is the typical relationship between risk and return?
sattari [20]
When it comes to investing, the typical relationship between the risks and returns was that the greater the potential risk, the greater the investment return an investor will get. That is why investments are very risky, and an investor must be a risk-taker to attain such success. 
8 0
3 years ago
Read 2 more answers
Suppose that the US Federal Reserve Board was able to confirm that the US economy is in the brink of a recession, operating at a
neonofarm [45]

Answer:

a.) To combat recession the federal reserve board can adopt <u>expansionary monetary policy.</u> The fed can<u> reduce the cash reserve ratio</u>.

b.) The aggregate output and price is going to increase in short run. In the long run though economy will be operating at equilibrium level.

Explanation:

With the decline in the cash reserve ratio the total reserves with the banks will increase. This will boost credit credit creation. As the money supply in the economy increases the aggregate demand will increase. This will further lead to increase in price and output level.

In the medium term, the aggregate supply will also increase though not as much as demand, so there will be excess of demand. The price level will rise further.

In the long run though output will always be at the equilibrium level.

3 0
3 years ago
Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant
Brut [27]

Answer:

The current price per share is $39.21

Explanation:

The two stage dividend growth model will be used to calculate the price of the share today. The first three years dividends will be calculated and discounted back and when dividend growth becomes constant, the terminal value will be calculated and discounted back to today's price.

The price per share =  D1 / 1+r + ...  + D3 / (1+r)³  + [(D4 / r - g) / (1+r)³]

The current price per share is,

P = 1.15 * (1+0.25) / (1+0.11)  +  1.15 * (1+0.25)² / (1+0.11)²  +  1.15 * (1+0.25)³ / (1+0.11)³  +  [( 1.15 * (1+0.25)³ * (1+0.06) / 0.11 - 0.06) / (1+0.11)³]

Price per share today = $39.21

8 0
3 years ago
Dwayne Johnson, Justin Bieber, Kevin Hart, and Jack Black are marooned on a desert island with Nicki Minaj, Karen Gillan, Taylor
Dvinal [7]

Answer: Miley Cyrus

Explanation:

6 0
2 years ago
Other questions:
  • Smith was employed as a salesman for borden, inc., which sold food products in 63 counties in arkansas, 2 counties in missouri,
    11·1 answer
  • Please select the word from the list that best fits the definition
    11·2 answers
  • The serving staff at mary's diner does not have to check with their supervisor before offering customers free dessert when the c
    12·1 answer
  • Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logist
    9·1 answer
  • Bufford Corporation had reported the following amounts at December 31, 2022: sales revenue $184,000, ending inventory $11,600, b
    8·1 answer
  • Cruiseline offers nightly dinner cruises off the coast of​ Miami, San​ Francisco, and Seattle. Dinner cruise tickets sell for $
    10·2 answers
  • In _______, the costs and operation of a business between a foreign company and a local partner are shared; in _______, a partne
    13·1 answer
  • Specific identification is ______. Multiple choice question. a high-tech security technique for identifying key employees a deta
    9·1 answer
  • Between the u. s. and nepal, nepal invests less in new factories and equipment. This will likely cause?
    12·1 answer
  • How many days of working capital financing does midas need to obtain from other sources?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!