« previous next »

Author Question: On November 1, 2011, Miracles, Inc. borrowed 30,000 on 12 note with both interest and principal due ... (Read 52 times)

dalyningkenk

  • Hero Member
  • *****
  • Posts: 598
on: Jul 5, 2018
On November 1, 2011, Miracles, Inc. borrowed 30,000 on 12 note with both interest and principal due on May 1, 2012. Prepare the adjusting entry to record interest for the year ended December 31, 2011.
 
  Date Transaction Debit Credit

Question 2

The journal entry to close the income summary account (showing a net loss) includes
 a. debiting the drawing account and crediting Income Summary.
   b. debiting Income Summary and crediting the drawing account.
   c. debiting the owner's capital account and crediting Income Summary.
   d. debiting Income Summary and crediting the owner's capital account.


jasonq

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 5, 2018
Answer to Question 1

Date Transaction Debit Credit
12/31/11 Interest expense 600
Interest payable 600
To record interest expense

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

How to calculate simple interest (Part 3) How to calculate simple interest (Part 3)
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
What principal will earn $77.14 interest at 6.65% p. What principal will earn $77.14 interest at 6.65% p.
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Video: Introduction to Genetics

For a complete list of videos, visit our video library