Answer:
It helps them to get their money without attending to their work places
The answer would be B. an analogy.
Answer:
Part 1:
Account Debit Credit
Cash $11,500
Notes Payable $11,500
(On 12% Interest)
Part 2:
Account Debit Credit
Interest Expense $690
Interest Payable $690
Part 3:
Interest Expense = $690
Interest Payable = $690
Explanation:
Part 1:
July 1, 2018 Midshipmen borrows $11,500 from Falcon Company.
Account Debit Credit
Cash $11,500
Notes Payable $11,500
(On 12% Interest)
Part 2:
From july 1,2018 to Dec 31,2018, Interest expense has accumulated for 6 months. Since each month the interest is 1% so For each month interest is
($11500 * 1% = $115).
For 6 months Interest expense = $115 * 6
For 6 months Interest expense = $690
General Entry:
Account Debit Credit
Interest Expense $690
Interest Payable $690
Part 3:
Same as Part 2 i.e
From july 1,2018 to Dec 31,2018, Interest expense has accumulated for 6 months. Since each month the interest is 1% so For each month interest is
($11500 * 1% = $115).
For 6 months Interest expense = $115 * 6
For 6 months Interest expense = $690
Interest Expense = $690
Interest Payable = $690
