Business, 31.03.2020 03:46 bobbykemp300

Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, 2018, had a one-year term and an 8 percent annual interest rate.

Required

A. What is the amount of interest expense to record for 2018?

B. What amount of cash was paid for interest in 2018?

C. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction has been recorded as an example.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:10, LolaSalem

Diggity dank corporation uses an activity-based costing system with two activity cost pools. diggity dank uses direct labor hours as the measure of activity in the first activity cost pool and the number of orders in the second activity cost pool. the following information relates to these two activity cost pools for last year: what was diggity dank's under- or overapplied overhead for last year? a. $17,000 overapplied b. $20,000 underapplied c. $27,000 underapplied d. $73,000 overapplied

Answers: 1

continue

Business, 22.06.2019 02:50, vcornejo7

Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks

Answers: 2

continue

Business, 22.06.2019 04:00, elijahcraft3

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

Answers: 2

continue

Business, 22.06.2019 05:00, nae8048

Which of the following are considered needs? check all that apply

Answers: 1

continue

You know the right answer?

Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records...