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:

image text in transcribed
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 2,090 Interest payable 2,090 Insurance expense 76,000 Prepaid insurance 76,000 Interest receivable 4,180 Interest revenue 4,180 Additional information: 1. The company borrowed $38,000 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 $114,000. 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 6% 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? 1. Interest rate 2. Month of insurance payment 3. Principal

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

Foreign Corrupt Practices Act Compliance Guidebook Protecting Your Organization From Bribery And Corruption

Authors: Martin T. Biegelman, Daniel R. Biegelman

1st Edition

0470527935, 978-0470527931

More Books

Students also viewed these Accounting questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago