I think it’s a and b are correct
Utility costs that relate to current year's operations but are not paid until the following year require:
- a debit to Utilities Expense
- a credit to Utilities Payable
<h3>What happens when expenses are not paid?</h3>
Expenses are meant to be paid within the accounting period that they occur and if this does not happen, then they are to be treated as current liabilities in the Balance sheet.
This means that the Utilities Expense account will be debited as is the norm but the account that will then be credited is the Utilities Payable account which is a current liability.
Options for this question:
(Select all that apply.)
- a debit to Prepaid Expense - Utilities
- a debit to Utilities Expense
- no journal entry
- a credit to Utilities Payable
- a credit to Cash
Find out more on recording expense payables at brainly.com/question/16781277
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Answer:
=E7*C2/2
Explanation:
The interest expense will be the carrying value of the bond times the effective interest rate.
On cell C8 we have the interest expense
On E7 we have the carrying value which is the outstanding balance.
Then, on C2 we got the effective rate
As this is an annual formula, we must divide by two to convert to semiannual rate.
A file is attached for how the excel sheet looks like
