Alpha obtained a 3%, $40,000, 2-year loan from Western Bank. The loan was received and recorded on

Fantastic news! We've Found the answer you've been seeking!

Question:

Alpha obtained a 3%, $40,000, 2-year loan from Western Bank. The loan was received and recorded on September 1. The interest will be paid when the loan is repaid. What adjusting journal entry should be recorded on December 31 (end of year).

Related Book For answer-question

Fundamentals of Financial Accounting

ISBN: 978-0078025372

4th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

See More Books

Posted Date: Mar 12, 2024 02:09 AM

See More Questions

Jordan Company's annual accounting year ends on December 31. It is now December 31, 2012, and all of the 2012 entries have been made except for the following: a. The company owes interest of $700 on...
Refer to PA4-2. PA4-2 Brokeback Towing Company is at the end of its accounting year, December 31, 2013. The following data that must be considered were developed from the company's records and...
Brokeback Towing Company is at the end of its accounting year, December 31, 2013. The following data that must be considered were developed from the company's records and related documents: a. On...
Three resistors are connected in series across a battery. The value of each resistance and its maximum power rating are as follows: 2.0 and 4.0 W, 12.0 and 10.0 W, and 3.0 and 5.0 W. (a) What is...
AJ is a 30% partner in the Trane partnership, a calendar year end entity. On January 1, AJ has an outside basis in his interest in Trane of $73,000, which includes his share of the $50,000 of...
The petty cash fund of Teasdale's Auto Repair Service, a sole proprietorship, contains the following. The general ledger account Petty Cash has a balance of $300. Instructions Prepare the journal...
Nereus Montemayor was an employee of VZ Hogs, a company that raises hogs and produces hog feed. VZ Hogs used an extruder manufactured by Sebright Products, Inc. to create hog feed out of discarded...
Use the following information to prepare a classified balance sheet for Alpha Co. at the end of 2016. Accounts receivable .....$26,500 Accounts payable ....... 12,200 Cash ............ 20,500 Common...
An ATV has an average acceleration of 1.9 m/s 2 . If the vehicle accelerates for 5.8 s and has an initial velocity of 15 m/s [E], what is the final velocity of the ATV?
1) Given <3,1>, < 2,4>, w= < -1,-3> a) Find u+v geometrically and algebraically b) Find 2u - 3w c) | d) Find a unit vector for vector v: e) Find a vector in the direction of v with a length of 10
What is the difference between a regional and supranational economy?
When General Motors (GM) decided to start a bug bounty programpaying hackers to find computer bugs in the companys information systemsthey purposely tried to avoid other companies mistakes with such...
What is the subject matter of business administration?
What is an operating statement?
What are the differences between individual and collective needs?
Singular & general solution for : y' = 1 + ye -y'
How many years will it take a $700 balance to grow into $900 in an account earning 5%?
Mandalay Industries is a private company that sells electronic test equipment. During the year 2013, the inventory records reflected the following: Units Unit Cost Total Cost Beginning...
At the end of 2013, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted...
Many businesses borrow money during periods of increased business activity to fi nance inventory and accounts receivable. Target Corporation is one of America's largest general merchandise retailers....
Let $X_{1}, \ldots, X_{n}$ be a set of independent and identically distributed random variables from a distribution $F$ that has parameter $\theta$. Let $\hat{\theta}_{n}$ be an unbiased...
Consider a sequence of random variables $\left\{X_{n}ight\}_{n=1}^{\infty}$ where $X_{n}$ has probability distribution function \[f_{n}(x)= \begin{cases}{[\log (n+1)]^{-1}} & x=n \\ 1-[\log...
Consider an arbitrary probability measure space $(\Omega, \mathcal{F}, P)$ and let $X_{r}$ be the collection of all possible random variables $X$ that map $\Omega$ to $\mathbb{R}$ subject...

Alpha obtained a 3%, $40,000, 2-year loan from Western Bank. The loan was received and recorded on

Question:

Expert Answer:

To adjust for the accrued interest expense on the loan o... View the full answer

Fundamentals of Financial Accounting

Students also viewed these accounting questions