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. Interest has not yet been recorded on the notes payable which was taken out on March 1, 2020 with a 4% annual interest rate. The note has a three-year term and principal and interest are due on the maturity date.   What is the interest? (Principle x rate x time)

. Interest has not yet been recorded on the notes payable which was taken out on March 1, 2020 with a 4% annual interest rate. The note has a three-year term and principal and interest are due on the maturity date.   What is the interest? (Principle x rate x time)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Interest has not yet been recorded on the notes payable which was taken out on March 1, 2020 with a 4% annual interest rate. The note has a three-year term and principal and interest are due on the maturity date.

 

What is the interest? (Principle x rate x time)

UNADJUSTED TB ADJUSTMENTS ADJUSTED TB INCOME STATEMENT BALANCE SHEET December 31, 2021 December 31, 2021 Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 67,000 67,000 Short-term investments 62,000 62,000 Accounts receivable, net 68,000 68,000 Allowance for doubtful accounts $ 1,000 1,000 Supplies 56,000 56,000 Inventory 62,000 62,000 Prepaid insurance 48,000 48,000 Land 450,000 450,000 Equipment 210,000 210,000 Accumulated depreciation 75,000 75,000 Trademark 38,000 38,000 Accounts payable 39,000 39,000 Wages payable Interest payable Income tax payable 18,000 18,000 8,250 8,250 Unearned revenue 27,000 27,000 Long-term notes payable - due 03.01.23 60,000 60,000 Common stock, 50,000 shares issued and outstanding 100,000 100,000 Retained earnings 220,000 220,000 Dividends 40,000 40,000 Sales revenue, net 1,592,964 1,592,964 Sales discount 1,368 1,368 Sales return and allowances 2,596 2,596 Interest revenue Page 1 Cost of goods sold 683,100 683,100 Wages expense 240,000 240,000 Insurance expense Bad debt expense Supplies expense 113,150 113,150 Depreciation expense Interest expense 44 3,600 Income tax expense TOTALS 2 141 214 2 141 214 2 144 814 2 141 214
Transcribed Image Text:UNADJUSTED TB ADJUSTMENTS ADJUSTED TB INCOME STATEMENT BALANCE SHEET December 31, 2021 December 31, 2021 Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 67,000 67,000 Short-term investments 62,000 62,000 Accounts receivable, net 68,000 68,000 Allowance for doubtful accounts $ 1,000 1,000 Supplies 56,000 56,000 Inventory 62,000 62,000 Prepaid insurance 48,000 48,000 Land 450,000 450,000 Equipment 210,000 210,000 Accumulated depreciation 75,000 75,000 Trademark 38,000 38,000 Accounts payable 39,000 39,000 Wages payable Interest payable Income tax payable 18,000 18,000 8,250 8,250 Unearned revenue 27,000 27,000 Long-term notes payable - due 03.01.23 60,000 60,000 Common stock, 50,000 shares issued and outstanding 100,000 100,000 Retained earnings 220,000 220,000 Dividends 40,000 40,000 Sales revenue, net 1,592,964 1,592,964 Sales discount 1,368 1,368 Sales return and allowances 2,596 2,596 Interest revenue Page 1 Cost of goods sold 683,100 683,100 Wages expense 240,000 240,000 Insurance expense Bad debt expense Supplies expense 113,150 113,150 Depreciation expense Interest expense 44 3,600 Income tax expense TOTALS 2 141 214 2 141 214 2 144 814 2 141 214
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