Madison company issued an interest-bearing note payable with a face amount of $31,200 and a stated interest rate of 8% to the metropolitan bank on august 1, year 1. the note carried a one-year term. based on this information alone, the amount of total liabilities appearing on madison's year 1 balance sheet would be:
Solved
Show answers
More tips
Answers on questions: Business
- B Business Allowance for doubtful accounts has a credit balance of $1,300 at the end of the year (before adjustment). the company prepares an analysis of customers’ accounts to estimate...
- B Business Allowance for doubtful accounts is classified as a(n) and has a normal balance. a. owners’ equity, creditb. contra-asset, debitc. owners’ equity, debitd. contra-asset, credit...
- B Business Universal containers sales reps can modify fields on an opportunity until it is closed. only the sales operation team can modify the post closed follow-up dates and post...
- B Business Allowance for doubtful accounts has a debit balance of $2,500 at the end of the year (before adjustment), and bad debt expense is estimated at 4% of net credit sales. if...
- B Business Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account. a. affects only income statement accounts.b. is not an acceptable...
- B Business When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method a....
- B Business A project is composed of many elements and includes a variety of tools to manage all of the elements of the project. Which of the following best defines the relationship...
- B Business IBM stock currently sells for 49 dollars per share. Over 12 month(s) the price will either go up by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is...
- B Business A company uses the weighted-average method for inventory costing. At the end of the period, 23,000 units were in the ending Work in Process inventory and are 100% complete...
- B Business When Dell sells various laptops, it also preinstalls Microsoft Office and other software that customers order at a discount before the laptop is shipped. This is an example...
Ответ:
Total Liability will be $32,240.
Explanation:
Interest Bearing note requires interest payment on the face value of the note outstanding. In this Question The bond Issued on August 1, with face value of $31,200 and with interest of 8% annually.
At the time of issuance a liability of $31,200 was recorded. Assuming the year end date is December 31, Year 1, Interest of 5 month has been accrued and it should also be recorded. As there is no evidence that the interest has been paid so, we will also record this accrued interest as a liability.
Journal Entry will be as follow
Dr. Interest Expense (31,200 x 8% x 5/12) $1,040
Cr. Interest Payable Liability $1,040
Total Liability will be $32,240 ($31,200 + $1,040).
Ответ:
Current liabilities $32,240
Note payable $31,200Accrued interest - note payable $1,040Explanation:
The adjusting journal entry made in December 31 is:
Dr Interest expense 1,040
Cr Accrued interest - note payable 1,040
the amount of accrued interest = principal x interest x time = $31,200 x 8% x 5/12 = $1,040
Accrual accounting system requires that companies recognize both revenues and expenses during the accounting periods that they actually occur, not when they are collected or paid.
Reported liabilities:
Current liabilities $32,240
Note payable $31,200Accrued interest - note payable $1,040Ответ:
The resulting rise in unemployment is mostly a rise in __cyclical unemployment because it is related to the state of the economy.
Explanation:
Frictional unemployment occurs as a result of workers' search for or transition to new jobs. It is brief and does not leave a mark on the economy. Structural unemployment comes about when the skills of workers do not match the requirements of employers. Therefore, workers require retraining and reskilling. Cyclical unemployment relates to the macro-economic situation that is prevailing during periods of recession.