Business, 24.06.2020 17:01 rodrickahammonds

On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interest rate of 10%. According to the terms of the loan, the principal amount will not be due for five years. Interest accrues monthly on the first day of each month, beginning November 1, 2018. With respect to this borrowing, Master's December 31, 2018, balance sheet included only a long-term note payable of $500,000. As a result: a. Liabilities are understated by $12,500 accrued interest payable
b. Liabilities are understated by $4,167 accrued interest payable
c. The December 31, 2018, financial statements are accurately presented
d. Liabilities are understated by $8,333 accrued interest payable

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 17:10

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

Answer

Business, 23.06.2019 00:20

According to the naeyc curriculum is effective when all of the following occur except

Answers: 2

Answer

Business, 24.06.2019 00:00

Multiple choice question 55 margin of safety in dollars is expected sales less break-even sales. actual sales less expected sales. expected sales divided by break-even sales. expected sales less actual sales.

Answers: 2

Answer

Business, 24.06.2019 00:30

Alex has not been keeping his banking records up-to-date on his last bank statement he found that had been charged an overdraft fee for writing a bad check in addition to his being charged a fee which of these is another possible consequence of an overdraft

Answers: 2

Answer

You know the right answer?

On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interes...

Questions