On August 1, Year 1 Gomez Company borrowed $48,000 cash. The one-year note carried a 5% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will effect Gomez's ledger accounts?
A) Interest payable (2400), Retained earnings (2400). B) Cash (2400), Retained earnings (2400). C) Interest payable (1400), Retained earnings (1400). D) Interest payable + 1000, Retained earnings (1000).
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On August 1, Year 1 Gomez Company borrowed $48,000 cash. The one-year note carried a 5% rate of interest. Which of the following shows how ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the difference between direct and indirect competition?
Answers (1)
How is a mutual fund different from an index fund
Answers (1)
Your co-worker is about five years away from retirement and she is feeling fairly risk-averse. She wants to make sure she preserves her retirement plan investments but she is also bullish on the market and wants to get some capital appreciation.
Answers (1)
A supply curve shows the relationship between complements. has a direct or positive relationship between price and quantity supplied. shows the relationship between quantity supplied and income.
Answers (1)
An Admin has noticed that the proration for their subscription products is not coming out to what they would expect. With a Start Date of January 1, 2017 and End Date of January 1, 2018, the Prorate Multiplier is coming out to 1,083.
Answers (1)
New Questions in Business
Lakisha is a professor of economics. She is currently earning $100,000 a year as a professor. She decides to quit her job as a professor and opens a consulting firm. In order to do this, she cashes out her retirement fund of $200,000.
Answers (1)
true or false Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.
Answers (1)
Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts.
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? a. 4 years. b. 6 years. c.
Answers (1)
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)