Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts
Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depreciation 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation
Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Dividends would be:_____.
a. debit Retained Earnings, $3,000; credit Common Stock, $3,000.
b. debit Common Stock, $3,000; credit Retained Earnings, $3,000.
c. debit Dividends, $3,000; credit Retained Earnings, $3,000.
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.

Answers

Answer 1

Answer:

d. debit Retained Earnings, $3,000; credit Dividends, $3,000.

Explanation:

The journal entry to close the dividend account should be

Retained earnings Dr $3,000

        To Dividend $3,000

(being the closing of the dividend account is recorded)

here the retained earning is debited as it decreased the stockholder equity and dividend is credited as it is closed


Related Questions

Lester hopes to earn $1100 in interest in 1.5 years time from $22,000 that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds quarterly, he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be

Answers

Answer:

The answer is "3.27%"

Explanation:

[tex]P = \$ 22,000\\\\t = 1.5\\\\I= \$ 1,100\\\\A=P+I=\$22,000+1,100=\$ 23,100\\\\n = 4\\\\[/tex]

Using formula:

[tex]\bold{A=P(1+\frac{r}{n})^{nt}}\\\\[/tex]

[tex]23,100=22,000(1+\frac{r}{4})^{4\times 1.5}\\\\23,100=22,000(1+\frac{r}{4})^{6}\\\\\frac{23,100}{22,000}=(1+\frac{r}{4})^{6}\\\\1.05=(1+\frac{r}{4})^{6}\\\\1.05^{\frac{1}{6}}=(1+\frac{r}{4})\\\\1.008164846=(1+\frac{r}{4})\\\\1.008164846-1=\frac{r}{4}\\\\0.008164846=\frac{r}{4}\\\\r=0.008164846\times 4\\\\r=0.03266\\\\r=3.266\% \approx 3.27\%[/tex]

which of the following attributes is not necessary for the information to qualify as a trade secret?

Answers

Answer:

short and long to type

Explanation:

i hope this question is helpful

please like comment

friend

4. The relationship of a principal broker and affiliated broker is one of
O agency.
O principality.
O subagency.
O commingling
5. The relationship of a principal broker and brokor is formally

Answers

principality because i just took the test and i got a 100

A company has two segments with total sales of $500,000 and total variable costs of $343,750. Traceable fixed expenses are $50,000 and common fixed expenses are $80,000. The break even in dollars for the company as a whole equals $ _______. (Enter your answer as a whole number.)

Answers

Answer:

$416,000

Explanation:

The computation of the break even in dollars for the company is given below:

Total fixed expenses = Traceable fixed expenses + Common fixed expenses

= $50,000 + $80,000

= $130,000

Now  

Contribution margin ratio = (Sales - Variable costs) ÷Sales × 100

= ($500,000 - $343,750) ÷ $500,000 × 100

= 31.25%

Now

Break-eve dollars = Fixed expenses ÷ Contribution margin ratio

= $130,000 ÷ 31.25%

= $416,000

At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $46,880. During the year, the company repaid a long-term loan in the amount of $12,805. The company paid $4,890 in interest during the year, and opened a new long-term loan for $11,290. How much is the ending long-term debt account on the company's balance sheet

Answers

Answer:

Shinedown, Corp.

The ending long-term debt account on the company's balance sheet is:

= $45,365.

Explanation:

a) Data and Calculations:

Beginning long-term debt balance = $46,880

Repayment of a long-term loan =        (12,805)

New long-term loan opened =              11,290

Ending balance of long-term debt = $45,365

Interest payment during the year = $4,890

b) The long-term debt account does not include the interest payment during the year.  If any interest is not paid, the amount will be taken as a current liability and not a long-term debt.

How are investors taxed on stocks and mutual fund investments? Check all that apply.

Answers

Answer:

yes

Explanation:

Generally, yes, taxes must be paid on mutual fund earnings, also referred to as gains. Whenever you profit from the sale or exchange of mutual fund shares in a taxable investment account, you may be subject to capital gains tax on the transaction. You also may owe taxes if your mutual fund pays dividends. The amount of tax owed ultimately depends on the combined total of your gains and losses.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

"Realizing a capital gain from one mutual fund doesn't guarantee that you'll owe taxes on that gain. Each dollar of capital loss potentially can offset a dollar of capital gain."

— Mitchell Drossman, head of National Wealth Strategies in the Chief Investment Office (CIO) for Merrill and Bank of America Private Bank

A closer look at the capital gains tax

Short-term capital gains are gains from the sale of capital assets held for 12 months or less and are taxed at ordinary income tax rates. Long-term capital gains are gains from the sale of capital assets held for more than 12 months and are currently subject to a federal long-term capital gains tax rate of up to 20%.

2021 Capital Gains Tax RatesFootnote 1

Short-term

Held for 12 months or less

Ordinary income tax rate

Long-term

Held for more than 12 months

0%, 15% or 20% depending on your taxable income

But a capital gain in one mutual fund doesn't guarantee that you'll owe taxes on that gain. Each dollar of capital loss potentially can offset a dollar of capital gain.

For example if, in the same tax year, you have $1,000 in long-term capital gains and $600 in long-term capital losses, you'll pay tax only on the net long-term capital gain of $400. If your capital losses exceed your capital gains for the tax year, you can use up to $3,000 of these excess capital losses to offset ordinary income in such tax year. You can carry over capital losses in excess of $3,000 to offset capital gains in future tax years (and, potentially, ordinary income of up to $3,000 per year).

Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college education for every citizen is important because it helps the United States create the best-educated workforce in the world. European countries like Germany are able to provide a free college education to their citizens, and the United States should as well. Which other argument uses the same underlying principle as the argument above?

a. Children should get free dental care, even if they drink a lot of soda which causes cavities.
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
c. Every child should get free dental care, even if they can afford to pay for it.

Answers

Answer:

1. The underlying principle is

to create the best-educated workforce in the world.

2. The argument that uses the same underlying principle as the argument  1 above is:

b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.

Explanation:

The underlying principle is a general rule which can be applied to different situations.  It shows the reason for doing something or embarking on a program.  For example, to offer free college education for every U.S. citizen, the underlying principle is to "create the best-educated workforce in the world."

Blazing Woman, a large music festival wants to secure a venue for its show coming up in two years. 19 months before the festival it enters into an agreement with Stonestock Farms. They shake hands on it, but do not write or sign any type of formal agreement. Eight months later Stonestock notified Blazing Woman that they decided against allowing their farm to be used. Can Blazing Woman enforce the agreement with the Stonestock even though it was not in writing

Answers

Answer:

No. Because the contract cannot be fully performed within a year of its creation, R is within the statute of frauds.

Explanation:

Since in the question it is mentioned that there is no written agreement so the agreement should not be enforceable as as per the law if the contract is to be treated as completed for a period of time so it should be in the written form

Here woman could not able to sue the stonstock farms

Therefore the above statement represent an answer

Standish Company manufactures consumer products and provided the following information for the month of February:

Units produced 131,000
Standard direct labor hours per unit 0.20
Standard fixed overhead rate (per direct labor hour) $2.50
Budgeted fixed overhead $65,000
Actual fixed overhead costs $68,300
Actual hours worked 26,350

Required:
a. Calculate the fixed overhead spending variance using the formula approach.
b. Calculate the volume variance using the formula approach.

Answers

Answer and Explanation:

The computation is shown below:

a. Fixed overhead Spending Variance is

= Budgeted Fixed Overhead - Actual Fixed overhead

= $65000 - $68300

= - $3300 (unfavorable)

b.

Fixed Overhead Volume Variance is

= (131000 × 0.20 × $2.50) - $65000

=$65500 - $65000

= $500 Favorable

In this way these can be determined

acc 430 Firm B, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Firm B

Answers

Answer: See explanation

Explanation:

a. Even though firm B received a cash of $522, only $22 which is the interest will be taxable as the $500 which is the principal isn't taxable.

b. Even though Firm B got $600 cash, there'll be no taxable income as the receipt brought about a liability. Hence, taxable income is 0.

c. Even though Firm B got $10000 cash, there'll be no taxable income as the receipt brought about a liability and the net worth wasn't increased. Hence, taxable income is 0.

d. The taxable income here will be $888.

Who sets the amount or rate of real estate commissions?

Answers

Answer:

q

Explanation:

1. Costs that do not change with the change in the level of production for some time is classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.
2. Under variable costing, the cost of goods manufactured consists of all except:_____.
a. direct materials.
b. direct labor.
c. variable factory overhead.
d. fixed factory overhead.
3. Costs that have characteristics of both a variable cost and a fixed cost are classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.

Answers

Answer:

1. b. fixed costs.

2. d. fixed factory overhead.

3. c. mixed costs.

Explanation:

Costs are usually classified as fixed and variable cost. Fixed cost are cost that don not vary with the level of activities (usually expressed as units of production or sales) of an organization.

Variable cost on the other hand are cost that varies with the level of activity. A combination of these cost is called mixed cost.

Under variable costing, all cost are dependent on activity level hence are not fixed.

A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:

Answers

Answer:

Dr Accounts payable 1850

Cr Merchandise inventory $37

Cr Cash $1813

Explanation:

Preparation of the journal entry to record the payment on July 12 Using the gross method,

JOURNAL ENTRY

Jul-12

Dr Accounts payable ($2300-450) 1850

Cr Merchandise inventory ($1850*2%) $37

Cr Cash $1813

($1850-$37)

(Being entry recorded for payment to supplier)

Stephen is a graduate student at West University. He works part-time at the campus coffee shop earning $5,000 this year. Stephen also receives a $25,000 scholarship that pays for his tuition, fees, and books. What amount does Stephen include in his gross income

Answers

Answer:

5,000

Explanation:

Stephen is a graduate student at a university

He works part time at a shop where he earns 5,000 this is als like compensation

He receives $25,000 for scholarships

The amount Stephen includes in id groas income is 5,000

A person can choose to work any amount from 0 to 52 weeks per year at a wage of $1000 per week.The government implements a welfare program in which the welfare system pays $5000 per year to people with no labor market earnings, but benefits are reduced by $0.50 for each $1 in labor market earnings that a person receives.
a. True
b. False

Answers

Answer:

False

Explanation:

A farmer purchased a module builder for $50,000. The bank is willing to loan him $37,000. The terminal value of this investment is $15,000. There is a marginal tax rate of 25%, a growth rate of 2%, and a discount rate of 10%. What is the after tax terminal value of this investment

Answers

Answer:

the after tax terminal value would be $14,500

Explanation:

On October 1, 2020 Sheffield Corp. issued 5%, 10-year bonds with a face value of $6140000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Sheffield Corp. would be:_________

Answers

Answer: $70610

Explanation:

Following the information given, the issue price of the bond will be:

= $6,140,000 × 1.04

= $6,385,600

The premium on bonds payables will be:

= $6,385,600 - $6,140,000

= $245,600

Cash interest Payables will be:

= 6,140,000 × 5% × 3/12

= $76,750

Bond Premium amortization for Each Year will be:

= 245,600 / 10

= $24,560

Then, the premium amortized will be:

= $24,560 × 3/12

= $6,140

Therefore, the interest expenses on Dec 31 will be:

= Cash interset Payables - Premium amortized

= $76,750 - $6,140

= $70,610

why multinational company are developed​

Answers

Answer:

Multinationals provide an inflow of capital into the developing country.

Explanation:

This capital investment helps the economy develop and increase its productive capacity.

Multinational corporations (MNCs) have a global presence, even in developing countries. There are over 80,000 companies that drive the 21st-century economy. For example, Coca-Cola sells its product in nearly every country and has established over 900 bottling facilities worldwide. MNCs have propelled the GDP of their parent countries, most notably the United States, Japan, China and Western Europe, but how do their international operations affect developing countries?

It is difficult to say whether multinational corporations in developing countries are decidedly ‘good’ or ‘bad.’ One must consider many perspectives before making that judgment. However, researchers have identified a variety of positive and negative impacts applicable to most MNCs

Cara has just come in for her morning shift , but the sales floor is a mess . Looks like the night crew didn't clean up . She groans , but then gets to work cleaning the displays before customers come . If she doesn't , who else will ? What good problem - solving skills is she exhibiting? a ) Seeking advice when necessary Ob ) Open to seeing new perspectives c ) Having a solutions - oriented attitude

Answers

Answer:

having a solutions-oriented attitude

Explanation:

she seen things wasn't done so she starts cleaning because she takes pride in her job

A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is

Answers

Answer: off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.

Explanation:

The market to book ratio refers to the financial valuation metric that is used in the evaluation of the current market value of a company relative to the book value of the company.

It should be noted that there'll be an increase in the market price of a company when there are investments which are made by the company in successful research and development programs which entails the use of the conservative accounting principles.

Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 46,000 units per month is as follows:

Per Unit Direct materials $45.60
Direct labor $8.70
Variable manufacturing overhead $1.70
Fixed manufacturing overhead $18.50
Variable selling & administrative expense $3.00
Fixed selling & administrative expense $14.00

The normal selling price of the product is $98.10 per unit.

An order has been received from an overseas customer for 2,600 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.80 less per unit on this order than on normal sales.

Direct labor is a variable cost in this company.

Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,000 units for regular customers. The minimum acceptable price per unit for the special order is closest to: __________

Answers

Answer:

Ash Corporation

The minimum acceptable price per unit for the special order is closest to:

= $94.93.

Explanation:

a) Data and Calculations:

Normal production capacity per month = 46,000 units

Per Unit

Direct materials                                            $45.60

Direct labor                                                     $8.70

Variable manufacturing overhead                 $1.70

Fixed manufacturing overhead                   $18.50

Variable selling & administrative expense  $3.00

Fixed selling & administrative expense     $14.00

The normal selling price of the product = $98.10 per unit.

Special order = 2,600 units

Relevant costs:

Direct materials                                            $45.60

Direct labor                                                     $8.70

Variable manufacturing overhead                 $1.70  

Variable selling & administrative expense   $1.20

Total relevant costs per unit                      $57.20

Total variable cost for the special order = $148,720 ($57.20 * 2,600)

Loss sales revenue (1,000 * $98.10)              98,100

Total cost for the special order =             $246,820

Minimum acceptable price per unit = $94.93 ($246,820/2,600)

In addition to the date of recordation, what other factor is used to determine lien priority?

Answers

Answer:

Two factors primarily determine lien priority. Firstly the lien's categorization as superior or junior, and secondly the date the lien was recorded.

Explanation:

An encumbrance is most broadly defined as

another's right to use a property without the permission of the property owner.

another's right to claim the sale proceeds of a property that has been used as collateral for a loan.

another's interest in a real property that limits the interests of the freehold property owner.

another's right to control how the freehold owner of a real property uses the property.

In addition to the date of recordation, lien's categorization is other factor used to determine lien priority.

What is lien priority?

Lien priority helps to know the order in which creditors get paid following a foreclosure.

Date of recordation is one of the factor yo consider because those on the earlier dates are attended to first.

Therefore, lien priority is so base on categorization because Superiors are been attended to first.

Learn more about lien priority at;

https://brainly.com/question/24858866

Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $128,250. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to King and Stevens, 1:2. King and Stevens had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. How much is distributed to King and Stevens

Answers

Answer:

King and Stevens Partnership

                                King         Stevens       Total

Distributions        $162,110     $62,890   $225,000

Explanation:

a) Data and Calculations:

Annual salary allowance to King = $128,250

Interest rate on capital = 7%

Income sharing ratio = 1:2 King and Stevens

Net income for the year = $225,000

Capital balances = $75,000 King and $81,000 Stevens

                                King         Stevens    Total

Capital                 $75,000     $81,000    $156,000

Net income                                             $225,000

Annual salary      128,250                 0     (128,250)

Interest on capital  5,250         5,670        (10,920)

Share of profits     28,610       57,220       (85,830)

Capital, ending  $237,110    $143,890    $381,000

Distributions      $162,110     $62,890   $225,000

what are the purpose of the information in Management?​

Answers

Answer:

The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.

Answer:

It helps dictate how businesses form strategies, and implement processes based on them.

It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:_________
A) monopoly situations
B) both the short run and long run
C) the long run
D) the short run

Answers

Answer:

B.both the short run and long run.

Answer is b I had it on my test and got it right

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called: Customer orientation. Continuous improvement. Total quality management. Just-in-time manufacturing. Theory of constraints.

Answers

Answer:

Just-in-time manufacturing

Explanation:

just-in-time manufacturing can be regarded as Lean manufacturing

a production method that helps in

reduction of times within the production system and reduction in

response times from suppliers as well to to customers. It should be noted that the approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called Just-in-time manufacturing.

In the short run, open-market purchases a. increase investment and real GDP, and decrease interest rates. b. increase real GDP and interest rates, and decrease investment. c. increase investment and interest rates, and decrease real GDP. d. decrease investment, interest rates, and real GDP.

Answers

Answer: a. increase investment and real GDP, and decrease interest rates.

Explanation:

During an Open Market Purchase, the central bank of the country would be buying back securities from the public which means that it would be infusing money into the economic system.

With an increased amount of money in the economy, people will be able to save more which means that interests rate will drop because there are now more loanable funds. This drop in interest rates will encourage more companies and people to borrow cash for investment which will then lead to a higher GDP.

In the short run, in the open-market purchase, there has been an increase in investment and real GDP and decreased interest rates. Thus option A is correct.

The interest rate has been the amount of interest lent onto the principal sum. The GDP has been the gross domestic product that has been the market value of the final products.

In the open-market purchase, there has been an increase in the amount of money in the market. The government has been buying the securities and results in the market flow of money. The market flow will eventually result in an increase in the GDP with the decreased interest rates.

Thus in the short run, in the open-market purchase, there has been an increase in investment and real GDP and decreased interest rates. Thus option A is correct.

For more information about the open market purchase, refer to the link:

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K Company estimates that overhead costs for the next year will be $2,967,000 for indirect labor and $860,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 86,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 6 direct labor hours

Answers

Answer:

$267.00

Explanation:

First and foremost, it should be borne in mind that the overhead per direct labor hour is the total forecast overhead costs for next year divided by the planned direct labor hours, in essence, we simply determine plantwide overhead allocation rate, which is the basis for determining the amount of direct to be assigned to 6 direct labor hours

plantwide overhead allocation rate=(indirect labor overhead+factory utilities)/planned direct labor

indirect labor overhead cost=$2,967,000

factory utilities=$860,000

planned direct labor hours=86,000

plantwide overhead allocation rate=($2,967,000+$860,000)/86000

plantwide overhead allocation rate=$44.50

overhead allocation to a product requiring 6 direct labor hours=6*$44.50

overhead allocation to a product requiring 6 direct labor hours=$267.00

Accounts receivable financing (LO1) Charmin Paper Company sells to the 12 accounts listed next.
Account Receivable Balance Outstanding Average Age of
the Account over the Last Year
A $ 60,800 22
B 168,000 43
C 78,300 19
D 24,300 55
E 58,900 42
F 238,000 39
G 30,400 16
H 374,000 72
I 41,400 32
J 96,500 58
K 292,000 17
L 67,700 37
Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80 percent for account balances between 31 and 40 days, and 70 percent for account balances between 41 and 45 days. Customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. The current prime rate is 9.50 percent, and Capital charges 3.50 percent over prime to Charming as its annual loan rate.
a. Determine the maximum loan for which Charmin Paper Company could qualify.
b. Determine how much one month’s interest expense would be on the loan balance determined in part a.

Answers

Answer:

Charmin Paper Company

a. The maximum loan for which Charmin Paper Company could qualify is:

= $851,860

b. One month's interest expense on the loan balance determined in part a would be:

= $9,228.48

Explanation:

a) Data and Calculations:

Account Receivable                 Average Age of

Balance Outstanding   the Account over the Last Year

A     $ 60,800                                 22

B       168,000                                 43

C        78,300                                  19

D       24,300                                  55

E       58,900                                  42

F    238,000                                   39

G     30,400                                    16

H   374,000                                   72

I       41,400                                    32

J    96,500                                    58

K 292,000                                     17

L    67,700                                    37

Lending by Capital Financial Corporation:

Average age           Percentage

<=30 days                    90%

31-40 days                   80%

41-45 days                   70%

above 45 days              0%

<=30 days                    90%

A     $ 60,800              22

C        78,300               19

G       30,400               16

K    292,000               17

Total = $461,500 * 90% = $415,350

41-45 days                   70%

B       168,000              43

 E       58,900               42

Total = $226,900 * 70% = $158,830

31-40 days                   80%

F    238,000                39

 I        41,400                 32  

L      67,700                 37

Total = $347,100 * 80% = $277,680

Total amount that Capital can extend = $851,860

Prime rate = 9.50%

Capital charges over prime = 3.50%

Total interest charge = 13%

Annual Interest expense = $110,742 ($851,860 * 13%)

One month's interest expense = $9,228.48 ($110,742/12)

On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $330,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 10% to Calloway. The present value of the lease payments is $330,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021

Answers

Answer:

Dr Interest receivable $29,000

Cr Interest revenue $29,000

Explanation:

Preparation of the appropriate interest entry on December 31, 2021

December 31, 2021

Dr Interest receivable $29,000

Cr Interest revenue $29,000

[($330,000-$40,000)*10%]

($290,000*10%)

(To record Interest)

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