Cheap Travel borrowed $60,000 on October 1 by signing a note payable to Community Bank. The interest
Question:
1. Make Cheap’s adjusting entry to accrue monthly interest expense at October 31, at November 30, and at December 31. Date each entry and include its explanation.
2. Post all three entries to the Interest Payable account. You need not take the balance of the account at the end of each month.
3. Record the payment of three months’ interest at December 31.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
Req 1 Oct 31 Interest Expense 250 Interest Payable 250 To accrue interest expe...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted:
Students also viewed these Accounting questions
-
Laziza Restaurant borrowed $80,000 on October 1 by signing a note payable to First State Bank. The interest expense for each month is $433. The loan agreement requires Laziza to pay interest on...
-
Trent Restaurant borrowed $110,000 on October 1 by signing a note payable to Hometown Bank. The interest expense for each month is $825. The loan agreement requires Trent to pay interest on January 2...
-
Resort Travel borrowed $80,000 on October 1 by signing a note payable to Texas First Bank. The interest expense for each month is $500. The loan agreement requires Resort to pay interest on December...
-
Ruby works in the treasury department of a large airline company. Over the coming months the airline company expects to increase flights as countries continue to ease travel restrictions. Ruby and...
-
(a) On 1 January 2015, Maddison Ltd sold an item of plant to Anna Ltd for $1000. Immediately before the sale, Maddison Ltd had the item of plant on its accounts for $1500. Maddison Ltd depreciated...
-
Partially completed T-accounts and additional information for Cardinals, Inc., for the month of November follow. Additional information for November follows: Labor wage rate was $30 per hour. ...
-
In a single stage steam turbine saturated steam at 10 bar is supplied through a convergent divergent steam nozzle of \(20^{\circ}\) angle. The mean blade speed is \(400 \mathrm{~m} / \mathrm{s}\)....
-
Assume that HOS could issue a zero coupon bond at an annual interest rate of 4 percent with semiannual compounding for 20 years. If HOS receives $ 2,264.45 for the bond, how much would it have to pay...
-
Law is a pervasive part of our lives; regulations shape our daily activities, govern our interactions with one another and our relationships to the planet and to other nations. Often our legal...
-
Bronys Bikes maintains two general demand deposit bank accounts and an imprest payroll account. One of the general bank accounts and the payroll account are with Dallas Dollar Bank. The second demand...
-
During 2012, Transit Airlines paid salary expense of $42.4 million. At December 31, 2012, Transit accrued salary expense of $2.2 million. Transit then paid $2.2 million to its employees on January 3,...
-
Return to the situation in Short Exercise 3-10 . Here you are accounting for the same transactions on the books of Community Bank, which lent the money to Cheap Travel. 1. Make Community Banks...
-
Each of the six real batteries in Figure has an emf of 20 V and a resistance of 4.0. (a) What is the current through the (external) resistance R = 4.0? (b) What is the potential difference across...
-
What is the Christian's appropriate attitude towards poverty and work? Have efforts to alleviate poverty been successful? Is poverty a problem that is best addressed by non-government actors? What...
-
Research field- International Trade Data Analysis for the Impact of Brexit You are to explore, understand, and contextualise your chosen research area and present your understanding in a report...
-
What effect Eventually, BREXIT will make on EU? How it will benefit UK? What will be the possible outcome?
-
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to...
-
Wilma is the Chief Executive Officer of Flintstone Corporation, a publicly traded, calendar year C corporation. For the current year, Wilma's compensation package consists of: Cash compensation $ 2 ,...
-
The anode reaction in this electrolysis cell is the oxidation of water to O 2 (g). What volume of O 2 (g), measured at standard temperature and pressure was produced?
-
The Strahler Stream Order System ranks streams based on the number of tributaries that have merged. It is a top-down system where rivers of the first order are the headwaters (aka outermost...
-
Suppose the prevailing equilibrium wage in a labor market is $24.00 per hour. What would be the impact of a minimum wage law that sets the minimum wage in this market at $32.00 per hour? What if the...
-
Explain the meaning of each of the following terms as they relate to a bond issue: (a) Convertible, (b) Callable, and (c) Debenture.
-
How would a bond payable be reported on the balance sheet if: (a) It is payable within one year and (b) It is payable beyond one year?
-
Using the bond from Practice Exercise 14-2A, journalize the first interest payment and the amortization of the related bond discount.
-
Give a summary of concepts and the applications for the following quistion: When a 200.0-g mass is attached to a spring, it stretches the spring by 7.50 cm. With that mass-spring system in...
-
A helium-filled balloon, whose envelope has a mass of 0.29 kg, is tied to a 3.8-m long, 0.054-kg string. The balloon is spherical with a radius of 0.40 m. When released, it lifts a length h of the...
-
A potato is launched out of a building (building A) from the 10th floor which is 15 m high, with a velocity of 55 m/s at an angle of 35.0 above the horizontal. There is a building (building 2) 130 m...
Study smarter with the SolutionInn App