This is a mixture of both. You may lose a customer if you don't but most likely you will still have enough to keep moving forward with your career so I would say False
Government enhances the operation of the market system by providing an appropriate legal foundation and promoting competition. Transfer payments, direct market intervention, and taxation are among the ways in which government can lessen income inequality.
Answer:
December 31 Interest expense $3900 Dr
Interest Payable $3900 Cr
Explanation:
The interest and principal is both payable at maturity thus we need to accrue the interest payment and create a liability against the amount of interest due. The adjustment is made 6 months from the issue of the note thus the interest for 6 months is due. The entry would be to record 6 month's interest that relates to this year. The interest expense will be,
120000 * 0.065 * 6/12 = $3900
As the payment is not made until maturity we will credit interest payable by this amount.
