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lilavasa [31]
2 years ago
13

On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a thr

ee-month, 6% note payable. Interest is payable at maturity. Aviation’s year-end is December 31.
Required:
1. Record the necessary entries .
2. Record the issuance of note.Record the adjustment for interest.
3. Record the repayment of the note at maturity.
Business
1 answer:
nekit [7.7K]2 years ago
6 0

Answer:

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

2. December 31,2021

Dr Interest expense 510

Cr Interest Payable 510

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

Dr Notes Payable 51000

Cr Cash 51,765

Explanation:

Preparation of to record the necessary entries

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

(Being to Record the issuance of note)

2. December 31,2021

Dr Interest expense 510

(51,000*6%*2/12)

Cr Interest Payable 510

(Being to record the adjustment for interest)

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

(51,000*6%*1/12)

Dr Notes Payable 51000

Cr Cash 51,765

(510+255+51000)

(Being to Record the repayment of the note at maturity)

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10% from each sale = $3

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If Bates sells less than 2,000 units, then he should prefer option 2, but if he sells more than 2,000 units, then option 1 is better for him.

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Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more​ risky,
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The correct answer is: "People are rational".

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Answer:

Follows are the solution to the given points:

Explanation:

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Its cost of intangible material could be amortized for 180 months starting in April. (\frac{41,000}{180}) \times 9\ \ months = \$2,050 is her amortization deduction.

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