on November 1, 2015, ABC Inc. borrowed $5,000 by issuing a 120-day not with 10%
ID: 2780837 • Letter: O
Question
on November 1, 2015, ABC Inc. borrowed $5,000 by issuing a 120-day not with 10% cannual interest. on pecember 31s: of that year, the company A) interest expense of $500 (rounded to the nearest dollar) B) interest expense of $125 Crounded to the nearest dollar) C) interest expense of $83 (rounded to the nearest dollar) D) interest expense of $0 (the note is due next year). recognize. .. ompany Franco Company sold office furniture for $6,500 cash. The furniture cost $40,000 and had accumulated depreciation through the date of sal totaling $35,000. The company will recognize... A) a loss of $5,000 from the sale. B) a gain of $1,500 from the sale c) a loss of $1,500 from the sale. D) neither a gain nor a loss from the sale.Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Amount c) Interest expense of $83 Amount of note 5,000.00 Days from Nov 1 to Dec 31 = 60.00 Interest = 5000*10%*60/360 83.00 Particulars DR Cr Cash DR 6,500.00 Accumulated Depreciation Dr 35,000.00 To Furniture 40,000.00 To Gain on sale = 6500 + 35000 - 40000 1,500.00 B gain of 1,500 from the sale
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