On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. Thefirst payment consists of interest of $11,550 and principal repayment of $11,942 . The journal entry to record thepayment of the first annual amount due on the note would include a
a. debit to cash for $11,942
b. credit to interest payable for $11,550
c. debit to notes payable for $11,942
d. debit to interest expense for $23,492
c
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The medical services department of Fischer Company budgeted $25 of variable medical expenses per employee for May, based on 2,000 employees in operating departments. During May an average of 1,980 employees were employed in operating departments. Actual variable medical expenses totaled $50,700 for the month. How much variable medical expenses should be charged to operating departments at the end of May for performance evaluation purposes?
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