On November 1, Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.
Answer to relevant QuestionsOn November 1, Bahama National Bank lends $4 million and accepts a six-month, 6% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December ...During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable. On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a ...Two competing travel agencies provide similar services, but they record sales using different methods.1. Eastern Travel records sales and sales tax in separate accounts. For the month of January, cash sales total $30,000, ...During January, Luxury Cruise Lines incurs employee salaries of $1 million. Withholdings in January are $76,500 for the employee portion of FICA, $150,000 for federal income tax, $60,000 for state income tax, and $10,000 for ...
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