Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2021:

The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2021:

General Journal Debit Credit

Interest expense 2,100

Interest payable 2,100

Insurance expense 70,000

Prepaid insurance 70,000

Interest receivable 4,200

Interest revenue 4,200

Additional information:

  1. The company borrowed $35,000 on June 30, 2021. Principal and interest are due on June 30, 2022. This note is the company's only interest-bearing debt.
  2. Insurance for the year on the company's office buildings is $105,000.The insurance is paid in advance.
  3. On August 31, 2021, Yankel lent money to a customer.The customer signed a note with principal and interest at 9% due in one year.

Required:

1.What is the interest rate on the company's note payable?

2.The 2021 insurance payment was made at the beginning of which month?

3.How much did Yankel lend its customer on August 31?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

More Books

Students also viewed these Accounting questions