Business, 19.07.2020 01:01 emacwhaleng

Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1. Brickyard signs a $200,000, 4%, 9-month note. Interest is due at maturity on September 30. The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. 1. What adjusting entry should Brickyard make on June 30 before preparing its annual financial statements?

a. Debit Interest Expense and credit Interest Payable for $4,000
b. Debit Cash and credit Interest Payable for $4,000
c. Debit Cash and credit Interest Expense for $4,000
d. Debit Interest Payable and credit Interest Expense for $4,000

2. What journal entry will Brickyard make when paying the interest at maturity?

a. Debit Notes Payable and credit Cash for $206,000
b. Debit Interest Expense for $4,000, and credit Cash for $4,000
c. Debit Interest Expense for $6,000 and Cash for $206,000
d. Debit Interest Payable for $4,000, debit Interest Expense for $2,000, and credit Cash for $6,000

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, bale4

Which of the following best describes how the federal reserve bank banks during a bank run? a. the federal reserve bank regulates exchanges to prevent the demand for withdrawals from rising above the required reserve ratio. b. the federal reserve bank acts as an insurance company that pays customers if their bank fails. c. the federal reserve bank has the power to take over a private bank if customers demand too many withdrawals. d. the federal reserve bank can provide a short-term loan to banks to prevent them from running out of money. 2b2t

Answers: 2

continue

Business, 21.06.2019 21:40, brooket30057

Morgana company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $168,000, $315,900, an $97,200, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,100, machine hours 24,300, and number of inspections 1,800. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Answers: 1

continue

Business, 22.06.2019 10:00, boo6931

Employees at a library check out books to patrons. books have an isbn and a name. the library sometimes has multiple copies of the same book. books have one or more authors. a patron is an individual who has an active (non-expired) library card. for each library card, we store the person's first and last names and their address. for each employee, we store their employee id, current salary, first and last name and their address. we also store the employee id of their current manager. each time we check out a book to a patron we need to store the date of the transaction, the employee who checked out the book to the patron, and the library card of the patron. some employees have library cards. if an employee patron turns in a book late, the fine that they pay is a percentage of their salary. some employees are authors who have library cards—they are allowed to check out as many books as they like.

Answers: 1

continue

Business, 22.06.2019 11:00, ilovecatsomuchlolol

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units. required: prepare a production budget by month and in total, for the second quarter.

Answers: 3

continue

You know the right answer?

Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1. Brickyard signs a $20...