On July 1, Shady Creek Resort borrowed $430,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $64,083. What is the journal entry to record the first annual payment?
A. Debit Interest Expense $34,400; credit Cash $34,400.
B. Debit Interest Expense $34,400; debit Notes Payable $29,683; credit Cash $64,083.
C. Debit Interest Expense $34,400; debit Interest Payable $29,683; credit Cash $64,083.
D. Debit Cash $430,000; debit Interest Expense $64,083; credit Notes Payable $494,083.
E. Debit Interest Expense $64,083; credit Cash $64,083.
Answer: B
You might also like to view...
Which ethical decision-making approach foster decisions made on moral principles that infringe as little as possible on the entitlements of others?
a. Justice approach b. Utilitarian approach c. Rights approach d. Objectivity approach
Which of the following is NOT a stage in the traditional flow of the family life cycle?
A. young divorced with children B. young married without children C. middle-aged married without dependent children D. young single E. young married with children
A company purchased an equipment system for $325,000 on January 2. The company expects the equipment to last for eight years or 81,250 hours of operation, with no estimated salvage value. During the first year, the equipment was in operation for 8,000 hours, while in the second year, the equipment was in operation for 8,700 hours. Compute the depreciation expense relating to the equipment for Year 1 and Year 2 using the following depreciation methods:a. Straight-line.b. Double-declining-balance.c. Units-of-production.
What will be an ideal response?
The provisions of sections 302 and 404 of the Sarbanes-Oxley Act (as originally enacted) have proved especially troublesome for:
A. healthcare providers. B. private universities. C. cities and municipalities. D. small businesses. E. individual taxpayers.