Micro Company borrowed $30,000 from a local bank on a 15-year mortgage on Aug. 1. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Micro Company borrowed $30,000 from a local bank on a 15-year mortgage on Aug. 1. The annual interest rate is 10%. Prepare the adjusting entry needed on Dec. 31. The company's equipment depreciates $420 per month. If you must record 3 months worth of depreciation, what is the journal entry? Micro Company borrowed $30,000 from a local bank on a 15-year mortgage on Aug. 1. The annual interest rate is 10%. Prepare the adjusting entry needed on Dec. 31. The company's equipment depreciates $420 per month. If you must record 3 months worth of depreciation, what is the journal entry?
Expert Answer:
Answer rating: 100% (QA)
Adjusting Entry for Mortgage Interest Expense on December 31 Assuming the interest is payabl... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Adjusting journal entries at December 31, 2022: 1. Depreciation expense on the equipment for December has been correctly calculated to be $145. 2. Based on a year-end count, there was $155 worth of...
-
The ledger of Lefevour, Inc. on March 31, 2012, includes the following selected ac- Prepore adpesting enres counts before adjusting entries for deferrals (SO 5) Debit Credit Prepaid Insurance...
-
4. Expense recognition principle. (c) Efforts (expenses) should be matched with ac- complishments (revenues). (d) Companies record revenues when they receive cash and record expenses when they pay...
-
The Seawall Corporation uses an injection molding machine to make a plastic product, Z39, after receiving firm orders from its customers. Seawall estimates that it will receive 50 orders for Z39...
-
Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following allocation bases in the three companies: Required:...
-
A political leader comes to you and wonders from whom she will get the most complaints if she institutes a price ceiling when demand is inelastic and supply is elastic. a. How do you respond? b....
-
You have just purchased a new car, making a down payment of \(\$ 8,000\) and financing the balance of the purchase cost on an installment credit plan. According to the credit agreement, you will pay...
-
The market for taxi services in a Midwestern town is monopolized by firm 1. Currently, any taxi services firm must purchase a $40,000 ??medallion?? from the city in order to offer its services. A...
-
Rikki has arranged life insurance via superannuation. The advantage this arrangement has in relation to other ownership options is: Question 8Answer Medical examinations are generally not required to...
-
write a closed-research legal memo using the case cases given, addressing whether Mr. Adler can assert an adverse possession claim to Scrub Lot 40. Please write up your memo using the issue , brief...
-
Presented here are the financial statements of Sunland Company. SUNLAND COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,800 $21,000 Accounts receivable 24,600 18,700...
-
A runner maintains constant acceleration after starting from rest as she runs a distance of 60.0 m. The runner's speed at the end of the 60.0 m is 9.00 m/s. How much time did it take the runner to...
-
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 550 750 900 Total costs Variable costs $115,500 $157,500 $189,000 Fixed costs...
-
Organizations are increasingly transcending country boarders and physical space limitations. What are some effective strategies to motivate dispersed team members in a virtual setting? What are some...
-
You have a choice of putting your $1,000 life savings into investment Uno (which bears 5 % per annum compound interest compounded annually) or putting your $1,000 into investment Duos (which bears...
-
Entity A is being sued by a customer for $5,000,000 for breach of contract over a cancelled order. Entity A has obtained a legal opinion that there is a 20% chance that Entity A will lose the case....
-
What role does HR play in reinforcing this mission/vision statement? Describe the steps companies like Walt Disney go through to develop a human resource strategy? Discuss current changes in the...
-
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
-
On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses...
-
On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The bonds have a face amount of $80 million and are priced to yield 4%. Interest is paid semiannually....
-
Compare and contrast amortization of intangible assets with depreciation and depletion.
-
The Internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations,...
-
Which of the following does not describe accounting? a. Language of business. b. Is an end rather than a means to an end. c. Useful for decision making. d. Used by business, government, nonprofit...
-
Why does internal accounting information need to be timely?
Study smarter with the SolutionInn App