On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable every year on February 1st beginning February 1, 2019. The accountant is preparing the company's financial statements for the period ending May 31, 2018. The journal entry to record the interest on the loan on May 31, 2018 is: O Debit interest expense and credit cash $300 Debit interest expense and credit cash $100 Debit interest expense and credit interest payable $300 O Debit interest expense and credit interest payable $100 On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable every year on February 1st beginning February 1, 2019. The accountant is preparing the company's financial statements for the period ending May 31, 2018. The journal entry to record the interest on the loan on May 31, 2018 is: O Debit interest expense and credit cash $300 Debit interest expense and credit cash $100 Debit interest expense and credit interest payable $300 O Debit interest expense and credit interest payable $100
Expert Answer:
Answer rating: 100% (QA)
solution The Correct answer is option C date particulars debit credit 310518 Interest expense 300 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
The Roussel Company prepares its financial statements for the period ending on 31 December X1. Required In the following table, you will find a list of events or transactions. Indicate, by a...
-
Give the general journal entry to record the April 1, 2016, bond issue. Star Inc. was authorized to issue $1,000,000 of 12 percent bonds. On April 1, 2016, the corporation issued bonds with a face...
-
Prepare journal entry to record the following issuances of stock; A corporation issued 700 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $800....
-
Suppose that the following equations describe an economy: C = 170 + 0.60YD M s = 735; P = 1 T = 200 I = 100 - 4i Md = 0.75Y - 6i G = 350 a) what is the equation for equilibrium in the goods market?...
-
What factors must the regulatory authorities consider when deciding whether to approve or deny a merger?
-
Listed below are the balance sheet and statement of operations for Wynn Memorial 1. Compute Wynn Memorial Nursing Home's current ratio. 2. Compute Wynn Memorial Nursing Home's acid (or acid-test)...
-
Match each item in the value chain, 1 through 7 , with an impact of an artificial intelligence initiative, choosing from items a through g. Value Chain 1. Research and development 2. Design 3. Supply...
-
Multiple Choice Questions The following questions concern internal controls in the inventory and warehousing cycle. Choose the best response. a. Which of the following controls will most likely...
-
Marijuana in the Workplace Critical thinking questions: Do you agree with former President Obama's policy about the conflict between federal and state marijuana laws in which his policy was to take...
-
In March 2020, the management team of Londonderry Air (LA) met to discuss a proposal to purchase five shorthaul aircraft at a total cost of $25 million. There was general enthusiasm for the...
-
Major Activity This major activity consists of two assessment tasks. For assessment task 1, the student is required to review existing financial information and prepare budgets. What do students need...
-
At December 3 1 , 2 0 1 8 , Wonder of the World Travel has an Accounts Receivable balance of $ 9 0 comma 0 0 0 . Allowance for Uncollectible Accounts has a credit balance of $ 8 2 0 before the year -...
-
Discussion Board #2 Choose ONE of the three topic sentences and rewrite the supporting sentences (Activity 5.1) and the concluding sentence (Activity 5.2) that you wrote about it in the previous...
-
W hat kind of risks are there in future, forward , option and swap contract? please answer each contract with their risks separately.
-
Discovery Process Part 1: Discovery of Records One party (usually the Defendant) sends a Notice to Produce to the other party. It requires that the party disclose in an Affidavit of Records all...
-
You have graduated in accounting from a renowned university in Malaysia and are currently employed as a junior accountant trainee in Puncak Dagangan Bhd (PDB), a multinational diversified listed...
-
Tp G Q 20 De a P t LIS + wiley.com/was/ui/2/assessment-player/index.html?launchld=ee6325b5-e08e-4372-bcca-b7208d6f7e4c/question/3 L Avery Jewelry Z Zoom Overview | Teespring Blackboard Church Plan...
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
Melody Lane Music Company was started by John Ross early in 2018. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company...
-
When is revenue recognized with respect to licenses?
-
What is the primary difference between interim reports under IFRS and U.S. GAAP?
-
Consider two connected components of an undirected graph \(G\), and suppose each has no cycles. Let \(G^{\prime}\) be a new graph whose vertex set is the union of the vertex sets of the two...
-
Is it possible to construct an undirected tree whose eight vertices have degrees \(1,2,3,3,1,1,3\), and 2 , respectively? Why, or why not?
-
Write your own version of the Convert To Adj Matrix [edgelist, n] command without options, which takes a list of edges of an undirected graph and the number of vertices in the graph, and returns the...
Study smarter with the SolutionInn App