Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,125 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.

Answers

Answer 1
Answer:

Answer:

From all indications,it is very clear that the question requires a journal entry to record the unpaid interest.

Dr Interest expense             $1125

Cr Interest payable                         $1125

Explanation:

This is a typical case of an omitted entry in the books of accounts,specifically it relates year-end close accounting adjustments.

Under the accrual basis, which is prevalent in the  private sector,expenses are to recorded when incurred not when they are settled in cash,as result it is imperative that the above transaction needs be adjusted by debiting interest expense account and crediting same amount to interest payable account to affirm that the company has an obligation to $1125 to mortgage providers.


Related Questions

Daniel LLC incurred cost of $43,000 for material, $26,000 for labor, and $23,000 for factory overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred out. The cost per unit is
Gibson Company paid $12,000 on June 1, 2014 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2014 adjusting entry is A. Debit Prepaid Insurance and credit Insurance Expense, $3,500 B. Debit Prepaid Insurance and credit Insurance Expense, $8,500 C. Debit Insurance Expense and credit Prepaid Insurance, $3,500 D. Debit Insurance Expense and credit Prepaid Insurance, $8,500
Write a class called Cashier that directs a cashier how to cash goods and give change to customers. The typical cashier operations are as follows: (a) Cashier clears the cash register machine. (b) Cashier enters the name and the price of each item in the cash registering machine. (c) The customer tenders an amount of money to pay for the goods (We assume the amount covers the total). (d) The cash machine computes: a. The number of items purchased b. The total amount of purchase c. The average price of each item d. The number of coin denominations that the customer should receive. That is, the number of silver dollars, quarters, dimes, nickels, and cents the customer should receive in turn java
With regard to a futures contract, the long position is held by a. the trader who plans to hold the contract open for the lengthiest time period. b. the trader who commits to delivering the commodity on the delivery date. c. the trader who bought the contract at the largest discount. d. the trader who has to travel the farthest distance to deliver the commodity. e. the trader who commits to purchasing the commodity on the delivery date.
If the master budget prepared at a volume level of 10,000 units includes direct materials of $40,000, a flexible budget based on a volume of 12,000 units would include direct materials of $48,000.a. Trueb. False

How can strategic leaders be successful in an industry like the airlines industry

Answers

Answer:

Strategic leaders can help any airline related issue to be solved

Explanation:

Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager

When small describes how his customers choose to purchase his clothes (by evaluating that his brand is environmentally conscientious, whereas most other brands are not), which condition of exchange is being met?

Answers

The condition of exchange that is being met when Small describes how his customers choose to purchase his clothes (by evaluating that his brand is environmentally conscientious, whereas most other brands are not) is that each party believes it is appropriate or desirable to deal with the other party.

Identify each of the following items as: (a) an asset,
(b) a liability,
(c) revenue,
(d) an expense, or
(e) a dividend:
1. Amounts due from customers
2. Amounts owed to suppliers
3. Cash on hand
4. Cash paid to stockholders
5. Cash sales
6. Equipment
7. Note payable owed to the bank
8. Rent paid for the month
9. Sales commissions paid to salespersons
10. Wages paid to employees

Answers

Answer:

1. An asset.

2. A liability.

3. An asset.

4. A dividend.

5. Revenue.

6. An asset.

7. A liability.

8. An expense.

9. An expense.

10. An expense.

Explanation:

1. Amounts due from customers: an asset. It should be recorded on the balance sheet as account receivable.

2. Amounts owed to suppliers: a liability. It should be recorded on the balance sheet as account payable.

3. Cash on hand: an asset. It should be recorded on the balance sheet as account receivable.

4. Cash paid to stockholders: a dividend. It should be recorded on the statement of retained earnings.

5. Cash sales: revenue. It should be recorded on an income statement.

6. Equipment: an asset. It should be recorded on the balance sheet as account receivable.

7. Note payable owed to the bank: a liability. It should be recorded on the balance sheet as account payable.

8. Rent paid for the month: an expense. It should be recorded as an expense on the income statement.

9. Sales commissions paid to salespersons: an expense. It should be recorded as an expense on the income statement.

10. Wages paid to employees: an expense. It should be recorded as an expense on the income statement.

What are other roles of business in the economy?​

Answers

Answer:

i hope it helps u :)

Explanation:

In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs.

Answer:

Explanation:

In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure, called core inflation, Group of answer choices is more consistent with measures of inflation used in other countries.
fluctuates more than measures of inflation that include food and energy prices.
gives a better measure of ongoing, sustained price changes.
provides a real, rather than a nominal, rate of inflation.

Answers

Answer:

gives a better measure of ongoing, sustained price changes.

Explanation:

  • In order to measure the market-based rate of inflation that excludes the food and the energy processes are preferred by some economist as the core inflation that is long price trend and is frequent subject to the change as food and energy. As this index is based on the dynamic consumption basket the economic variables are adjusted by the price defoliator.

A buyer who needs a significant amount of trust with the seller is looking for a(n) _____. a. Transactional relationship b. Strategic partnership c. Joint venture d. Functional relationship e. Affiliative selling relationship

Answers

Answer:

e. Affiliative selling relationship

Explanation:

In an affiliative selling relationship, the buyer needs the information related to the product which helps the buyer to buy the product. The buyer trust on the seller with a view to satisfy his expectations

This relationship fully depends upon the trust which results in the best purchasing decision.

By maintaining the trust, the seller increase its sales which helps him to achieve its sales target