Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 8/30/16 a company borrows $18,000 from a local

On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to...

50.1K

Verified Solution

Question

Accounting

image
image
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16? An income statement account is debited for $720 An income statement account is debited for $480 A balance sheet account is credited for $240 and another balance sheet account is debited for the same amount An income statement account is debited for $240 and cash is credited for the same amount All of the above are correct O No entry is recorded on 12/31/17 None of the above is correct

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students