Choice Company calculates that interest of $3,600 has accrued at December 31 on outstanding notes payable....
Choice Company calculates that interest of $3,600 has accrued at December 31 on outstanding notes payable. How should Choice record this on December 31?
Select one: a. Interest Expense 3,600 Interest Payable 3,600 b. Prepaid Interest 3,600 Interest Expense 3,600 c. Interest Payable 3,600 Interest Expense 3,600 d. Interest Expense 3,600 Cash 3,600
Homework Answers
The correct answer is :
a. Interest Expense 3,600 Interest Payable 3,600
Note:
The accrued interest is booked as an expense under the accrual system of accounting and hence interest expense is debited. Further, since this interest is payable and increases the liability, there is an increase in interest payable.
Add Answer to:
Choice Company calculates that interest of $3,600 has accrued at
December 31 on outstanding notes payable....
Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable....
Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Liberty record this on December 317 Select one: BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY REVENUE ASSETS Cash Prepaid interest 900 LIABILITIES Interest Payable EXPENSE Interest Expense -900 +900 Ob BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY . ASSETS Cash Prepaid interest REVENUE LIABILITIES Interest Payable +900 EXPENSE Interest Expense 900 900 C BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY LIABILITIES Interest Payable ASSETS Cash...
Adjusting Entries for Interest At December 31, 2011, Portland Corporation had two notes payable outstanding (notes...
Adjusting Entries for Interest At December 31, 2011, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below. Principal Amount Interest Rate Number of Days Date of note December 31, 2011 Note 1 November 25, 2011 Note 2 December 16, 2011 December 31, 2012 Note 3 December 11, 2012 Note 4 December 07, 2012 $29,000 18,800 896 996 17,400...
Adjusting Entries for Interest At December 31, 2011, Portland Corporation had two notes payable outstanding (notes...
Adjusting Entries for Interest At December 31, 2011, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below. Date of note /Principal Amount /Interest Rate /Number of Days / December 31, 2011 Note 1 November 25, 2011 / $27,000 / 9% / 90 Note 2 December 16, 2011 / 16,800 / 8% / 60 December 31, 2012 Note...
Mackenzie Inc. has a $72,500 note payable at December 31. Interest in the amount of $3,625...
Mackenzie Inc. has a $72,500 note payable at December 31. Interest in the amount of $3,625 has accrued but has not yet been paid. Both the note payable and the accrued interest will become due next year. How will the interest affect the adjustments at the end of the period? Multiple Choice Interest Expense should be increased, because the cost of interest relates to the current period. Interest Expense does not affect this period since it will not be paid....
ACTION 18 ttdf1. Accrued interest Payable Compute the interest accrued on each of the foilowing notes...
ACTION 18 ttdf1. Accrued interest Payable Compute the interest accrued on each of the foilowing notes payable owed bay Gsloway Galloway, Inc, on December 31 Lender Date of Note Principal Interest Rate (%) Term Barton12/4$10000 Lawson 1213 14000 Rlley 12/1915.000 12 150 days 9 90 days 11 60 days Lender Accrued Interest Ridey de OEST?ON 19 Not yet answered Marked aldan if a company issues 10,000 shares of the following is the correct balance sheet entry? 54 par value common...
1) a) Merchandise Inventory. 10/31/2017 b) Accrued interest on Notes Receivable c) Unexpired Store Rent d)...
1) a) Merchandise Inventory. 10/31/2017 b) Accrued interest on Notes Receivable c) Unexpired Store Rent d) Depreciation on Equipment e) Accrued interest on Notes Payable f) Accrued Office Salaries g) Store Supplies on hand h) Bad debts is based on the aging of Accounts Receivable i) Expired Insurance 1 219,000 1.500 8,200 10,000 2,500 6.100 11.000 16,500 7,800 2) Prepare a Multi-Step Income Statement for the year ended October 31, 2017 OR 3) Prepare a Classified Balance Sheet as of...
On December 31, Torres Company has earned interest revenue of $4,400 on outstanding notes, even though...
On December 31, Torres Company has earned interest revenue of $4,400 on outstanding notes, even though the company will not actually receive the interest until the following year. Required: Journalize the adjusting entry on December 31. Date Account Title Debit Credit Dec. 31
Manhattan Company recorded an adjusting entry to accrue interest owed of $1300 as of December 31,...
Manhattan Company recorded an adjusting entry to accrue interest owed of $1300 as of December 31, Year 1. When the related note was paid during Year 2, the company paid $2450 in interest. Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry.) Select one: a. Interest expense 1150 Interest payable 1300 Cash 2450 b. Interest expense 1150 Cash...
As of December 31, Year 1, Moss Company had total cash of $146,000, notes payable of...
As of December 31, Year 1, Moss Company had total cash of $146,000, notes payable of $84,600, and common stock of $51,400. During Year 2, Moss earned $26,000 of cash revenue, paid $15,000 for cash expenses, and paid a $2,000 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 1. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate...
As of December 31, Year 1, Moss Company had total cash of $166,000, notes payable of...
As of December 31, Year 1, Moss Company had total cash of $166,000, notes payable of $86,600, and common stock of $53,400. During Year 2, Moss eamed $46,000 of cash revenue, paid $25,000 for cash expenses, and paid a $4.000 cash dividend to the stockholders Required a. Determine the amount of retained earnings as of December 31, Year 1. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate...
Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Liberty record this on December 317 Select one: BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY REVENUE ASSETS Cash Prepaid interest 900 LIABILITIES Interest Payable EXPENSE Interest Expense -900 +900 Ob BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY . ASSETS Cash Prepaid interest REVENUE LIABILITIES Interest Payable +900 EXPENSE Interest Expense 900 900 C BALANCE SHEET INCOME STATEMENT STOCKHOLDER'S EQUITY LIABILITIES Interest Payable ASSETS Cash...
Adjusting Entries for Interest At December 31, 2011, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below. Principal Amount Interest Rate Number of Days Date of note December 31, 2011 Note 1 November 25, 2011 Note 2 December 16, 2011 December 31, 2012 Note 3 December 11, 2012 Note 4 December 07, 2012 $29,000 18,800 896 996 17,400...
Mackenzie Inc. has a $72,500 note payable at December 31. Interest in the amount of $3,625 has accrued but has not yet been paid. Both the note payable and the accrued interest will become due next year. How will the interest affect the adjustments at the end of the period? Multiple Choice Interest Expense should be increased, because the cost of interest relates to the current period. Interest Expense does not affect this period since it will not be paid....
ACTION 18 ttdf1. Accrued interest Payable Compute the interest accrued on each of the foilowing notes payable owed bay Gsloway Galloway, Inc, on December 31 Lender Date of Note Principal Interest Rate (%) Term Barton12/4$10000 Lawson 1213 14000 Rlley 12/1915.000 12 150 days 9 90 days 11 60 days Lender Accrued Interest Ridey de OEST?ON 19 Not yet answered Marked aldan if a company issues 10,000 shares of the following is the correct balance sheet entry? 54 par value common...
1) a) Merchandise Inventory. 10/31/2017 b) Accrued interest on Notes Receivable c) Unexpired Store Rent d) Depreciation on Equipment e) Accrued interest on Notes Payable f) Accrued Office Salaries g) Store Supplies on hand h) Bad debts is based on the aging of Accounts Receivable i) Expired Insurance 1 219,000 1.500 8,200 10,000 2,500 6.100 11.000 16,500 7,800 2) Prepare a Multi-Step Income Statement for the year ended October 31, 2017 OR 3) Prepare a Classified Balance Sheet as of...
On December 31, Torres Company has earned interest revenue of $4,400 on outstanding notes, even though the company will not actually receive the interest until the following year. Required: Journalize the adjusting entry on December 31. Date Account Title Debit Credit Dec. 31
As of December 31, Year 1, Moss Company had total cash of $146,000, notes payable of $84,600, and common stock of $51,400. During Year 2, Moss earned $26,000 of cash revenue, paid $15,000 for cash expenses, and paid a $2,000 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 1. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate...
As of December 31, Year 1, Moss Company had total cash of $166,000, notes payable of $86,600, and common stock of $53,400. During Year 2, Moss eamed $46,000 of cash revenue, paid $25,000 for cash expenses, and paid a $4.000 cash dividend to the stockholders Required a. Determine the amount of retained earnings as of December 31, Year 1. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate...
Most questions answered within 3 hours.
-
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 43 minutes ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 1 hour ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 2 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 3 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 3 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 3 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 3 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 4 hours ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 4 hours ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 4 hours ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 4 hours ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 4 hours ago