Question

ane Doe's Corporation's fiscal year ends on January 31. On November 1, 2018, Jane Doe TTowed $100,000. The principal and 8% interest are payable on October 31, 2019. What mal entry would be required to record the payment of the principal and interest on October 31, 2019. 100,000 9.00 a. Note payable Wien Interest expense Who Interest payable to 6,000 m 2000 Ant MONARA 108.000 b. Note payable Interest expense 100,000 8,000 amorar Cash , 108,000 108,000 c. Note payable Cash 108,000 .00 d. Note payable Interest payable Cash 100,000 2,000 102,000 9. The summarized data for Imperial Furniture Co. Ltd. at December 31, 2018 are listed below: Common shares, 4,000 shares Retained earnings, Dec. 31/18 (after closing) Total revenues earned during 2018 Total expenses incurred during 2018 Total dividends declared and paid during 2018 $60,000 40,000 70,000 50,000 10,000 Total shareholders' equity at December 31, 2018 (after closing) is: to) a. $90,000 b. $60,000 c $80,000 . $100,000 Estava SMVlada rahmon sharan AAA Adóvaamatton

please provide a detailed explanation for both. I am very confused, thank you

Answer 1

8)	Interest accrued on 31-January 2019
	=$100000*8%*3 month/12 month
	=$2000
	That means at end of January 2019
	the interest payable would have been recorded be $2000
	Interest expenses to be recorded for the current period (Jan to Oct)
	=($100000*8%) -$2000
	=$6000
	therefore journal entry would be
	Date	Account Title	Debit	Credit
		Note Payable	$        1,00,000
		Interest expenses	$              6,000
		Interest payable	$              2,000
		Cash		$        1,08,000
		(to record interest expenses)
		Correct Option: A
9)	Common Shareholders equity = Common shares + Retained Earnings
		=$60000+40000
		=$100000
		Correct Option :D