Business, 13.08.2019 06:20 brennarfa

On july 1, orcas lab issued a $100,000, 12%, 8-month note. interest is payable at maturity. what is the amount of interest expense that should be recorded in a year-end adjusting entry if the fiscal year-end is (a) december 31? (b) september 30?

Answers: 1

Show answers

Answers

Answer from: nikki225

interest expense 6,000 debit

interest payable 6,000 credit

Explanation:

we need to recognize the interest accrued for the perdion

July 1st to December 31th = 6 months

100,000 x 12% x 6/12 = 6,000

Notice the 12% is an annual rate, the year has 12 months and we want to calculate for 6 months, so 12% x 6/12 will be the equivalent rate for the period we need.

the journal entry would be:

interest expense 6,000 debit

interest payable 6,000 credit

We need to:

recognize the interest expense for the current year and declare that we owe this amount of interest.

Answer from: Kizmit1423

a) 100,000 x 12% x 6/12 = 6,000

b) 100,000 x 12% x 3/12 = 3,000

Answer from: Quest

you can lose ranking 2 ways.

1) you don't have enough points due to you expending them by asking questions/your answers are deleted.

2) your brainliest's expired. this means that brainliests, once they exceed the 30 day limit, expires. this is to ensure that you continue to contribute into the community at a constant rank if you want to continue to have/exceed the rank you have right now.

if you go to profile, and click "show more information" located on the bottom left of the box with your information (on top of the questions answered, questions asked, and friends), you will be given the following information (example):

member since : 02/13/2017, 18: 11

questions answered: 9741

questions asked: 162

no. of brainliest answers: 1575

brainliest answers in last 30 days: 10

warnings: 0 view

questions/answers reported: 2637

questions/answers incorrectly reported: 64

look at the "brainliest answers in the last 30 days". this is the one that will affect your rank other than your points. again, once your brainliest expires (was earned 31+ days ago), it will not be counted.

Answer from: Quest

answer; the above statement/question is ( true);

Another question on Business

Business, 22.06.2019 10:10

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Answers: 1

Answer

Business, 22.06.2019 20:30

When patey pontoons issued 4% bonds on january 1, 2018, with a face amount of $660,000, the market yield for bonds of similar risk and maturity was 5%. the bonds mature december 31, 2021 (4 years). interest is paid semiannually on june 30 and december 31?

Answers: 1

Answer

Business, 22.06.2019 20:30

What talents or skills do u admire most in others

Answers: 2

Answer

Business, 22.06.2019 20:40

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.

Answers: 1

Answer

You know the right answer?

On july 1, orcas lab issued a $100,000, 12%, 8-month note. interest is payable at maturity. what is...

Questions