Answer:
higher; labor market regulations
Explanation:
I hope this helps you!
We Are the World is an importing company that specializes in importing hand-made arts and crafts from crafters and artisans around the world. The company has about $4 million worth of stock outstanding. Due to its desire to avoid double taxation, it is structured so that its individual shareholders pay taxes on all of the company's income. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed at their individual tax rates. We Are the World is a(n):_____.
a. limited liability company (LLC).
b. C corporation.
c. S corporation.
d. G corporation.
e. investment trust.
Answer:
c. S corporation.
Explanation:
S corporations that are elected for passing out the corporate income, losses, deductions and credits via to the shareholders for the federal tax motive. It is responsible for tax on specific gains and the passive income for the entity level
Also the shareholders could reported the flow via income and the losses on the personal income tax returns and can be assess at individual tax rates
So, the option c is correct
The business cycle measures fluctuations in the long-run trend growth rate of GDP. fluctuations in the profit of businesses. fluctuations in consumption. short-run fluctuations in economic activity. fluctuations in the average tax rate paid by businesses.
Answer: short-run fluctuations in economic activity.
Explanation:
The business cycle helps explain fluctuations in economic activity within a period of time which makes it a short run measure. The cycle consists of expansion phases and recession phases which show that economic activity seems to expand and then go into a recession overtime.
The lowest point in the recession is called the depression and when this happens, the economy hits rock bottom and starts to expand after some time. This is what happened with the Great Depression and the Great Recession. The height of the expansion is the peak and here, the economy is at its most successful.
On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000. The first payment was made on December 31, 2016, and the remaining seven payments are due annually on each December 31, beginning in 2017. At the date of the transaction, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Period Present value of ordinary annuity of 1 at 11% Present value of an annuity due of 1 at 11% 7 4.712 5.231 8 5.146 5.712 The initial value of the machine is
Answer:
Bart Inc.
The initial value of the machine is:
= $114,240.
Explanation:
a) Data and Calculations:
Date of purchase of machine from Fell Corp. = December 31, 2016
Annual payments for a non-interest-bearing note = $20,000
Appropriate present value of the annuity due = 5.712
PV of the annual payments for 8 years = $114,240 ($20,000 * 5.712)
First payment date = December 31, 2016
Period of payments = 8 years
Prevailing interest rate for this type of note = 11%
Check from an online financial calculator:
N (# of periods) 8
I/Y (Interest per year) 11
PMT (Periodic Payment) 20000
FV (Future Value) 0
Results
PV = $114,243.93
Sum of all periodic payments = $160,000.00
Total Interest = $45,756.07
The Costa Rica Tourism Board proposed a 6 percent tax on airplane travel to pay for a public hospital. A New York University economist estimates that the tax would result in a 6 percent increase in the price of an airline ticket. If the elasticity of demand is 1.33, what is the expected change in quantity demanded
Answer: 7.98% or 8%
Explanation:
The price elasticity of demand shows how much quantity demanded changes in response to a change in price.
Formula is:
Price elasticity of demand = Percentage change in quantity demanded / Percentage change in price
1.33 = Percentage change in quantity demanded / 6%
Percentage change in quantity demanded = 1.33 * 6%
= 7.98% or 8%
The risk free rate currently have a return of 2.5% and the market risk premium is 5.77%. If a firm has a beta of 1.42, what is its cost of equity
Answer:
10.69%
Explanation:
Market risk premium = 5.77% or 0.0577
The beta = 1.42
Risk free rate = 2.5% or 0.025
Cost of equity = Risk free rate + Beta*Market risk premium
Cost of equity = 0.025 + 1.42*0.0577
Cost of equity = 0.025 + 0.081934
Cost of equity = 0.106934
Cost of equity = 10.69%
If there are six firms in an industry and the market shares of the firms are 32 percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the Herfindahl index is
Answer: 2,204
Explanation:
The Herfindahl-Hirschman Index (HHI) shows just how competitive an industry is with a higher HHH meaning that it is not very competitive and a lower one meaning that it is quite competitive.
It is calculated by adding up the squares of the percentage market shares of the firms in the industry of interest:
= 32² + 25² + 19² + 9² + 8² + 7²
= 1,024 + 625 + 361 + 81 + 64 + 49
= 2,204
Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal utility of a rental car (MUrc) is 20 utils while the marginal utility of flying (MUfl) is 30 utils. What is the best advice for this consumer?
Answer:
Consumers should choose to take the flight.
Explanation:
The price of a rental car = $50
Marginal utility from the car = 20 utils
Now find the per dollar utility from car = $50 / 20 = 2.5
The price of a flight = $85
Marginal utility from the flight = 30 utils
Now find the per dollar utility from flight = $85 / 30 = 2.83
Since the per dollar, MU is greater in the case of flight so consumers should choose to take the flight.
Suppose a chair manufacturer finds that the marginal rate of technical substitution (MRTS) of capital for labor in her production process is substantially than the ratio of the wage rate for assembly-line labor (w) to the rental rate on machinery (r). How should she alter her use of labor and capital to minimize the cost of production? Holding output constant, the chair manufacturer should use ▼ less more labor and ▼ more less capital.
Answer:
The chair manufacturer should use less labor and more capital.
Explanation:
Note: This question is not complete because the important word less is omitted. The complete question is therefore provided before answering the question as follows:
Suppose a chair manufacturer finds that the marginal rate of technical substitution (MRTS) of capital for labor in her production process is substantially less than the ratio of the wage rate for assembly-line labor (w) to the rental rate on machinery (r). How should she alter her use of labor and capital to minimize the cost of production? Holding output constant, the chair manufacturer should use [less/more] labor and [more/less] capital.
Explanation of the answer is now provided as follows:
The marginal rate of technical substitution (MRST) is the amount by which the quantity of one input must be reduced when one more unit of another input is used to keep output constant.
In order to minimize cost of production while holding output constant, when the MRTS of capital for labor is substantially greater than the ratio of w to r, it implies that less capital and more labor should be used; but when the MRTS of capital for labor is substantially less than the ratio of w to r, it implies that more capital and less labor should be used.
Based on the above explanation, the chair manufacturer should use less labor and more capital.
Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $46,000 $39,500 Work in process $25,500 $36,000 Finished goods $41,500 $56,500 Additional information: Raw materials purchases $75,500 Direct labor cost $100,500 Manufacturing overhead cost incurred $68,500 Indirect materials included in manufacturing overhead cost incurred $11,800 Manufacturing overhead cost applied to Work in Process $67,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Answer:
Cost of goods manufactured= $228,700
Explanation:
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 25,500 + (46,000 + 75,500 - 39,500) + 100,500 + (68,500 - 11,800) - 36,000
cost of goods manufactured= $228,700
We deduct the indirect material from overhead because it is already incorporated into direct materials.
Health and Wealth Company is financed entirely by common stock that is priced to offer a 15 percent expected return. If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected return on the common stock after refinancing
Answer: 18%
Explanation:
The expected return on the common stock after refinancing will be calculated thus:
Let's assume that common stock is 1000. Therefore, return will be:
= 15% × 1000 = 150
Since 25% of the common stock is repurchased, this will be:
= 25% × 1000 = 250
Then, this 250 is financed by debt at 6%, and this will be:
= 6% × 250 = 15
Then, the new return will be:
= 150 - 15 = 135
Expected Return will now be:
= 135/(1000 - 250)
= 135/750
= 18%
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1000 and the one-year and 11-year spot interest rates are 5 and 7 percent respectively. What is the forward price of your contract
Answer:
$498.94
Explanation:
1 year interest rate = 5%
11 year interest rate = 7%
10 year spot interest rate at end of 1 year = [{(1+0.07)^11 / (1+0.05)}^(0.1) - 1]
10 year spot interest rate at end of 1 year = [(2.104852/1.05)^0.1] - 1
10 year spot interest rate at end of 1 year = 1.07202083615 - 1
10 year spot interest rate at end of 1 year = 0.072021
10 year spot interest rate at end of 1 year = 7.202%
Face value = $1,000
Forward Price of contract = $1000/(1+0.0720)^10
Forward Price of contract = $1000/2.00423136
Forward Price of contract = 498.944392915
Forward Price of contract = $498.94
The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $570,210 and a credit total of $506,590. This is before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?
Answer:
$63,620
Explanation:
Calculation to determine the amount of net income or net loss
Using this formula
Net income = Total debit - Total credit
Let plug in the formula
Net income=$570,210 -$506,590
Net income=$63,620
Therefore the amount of net income is $63,620
Ride N Style Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Ride N Styles pursue instead?
a. Close the business until the cost of us decreases.
b. Pursue a diferented strategy.
c. Compete based on intergroup rivalry, not in group rivalry
d. Create a strateg group through mergers
Answer:
b. Pursue a diferented strategy.
Explanation:
A differentiation strategy permits that the product or service should be different in the market also it provides the edge over your rivalrs. Here you can select various kinds of offering that attaching with the service in which you permit to charge more from your clients
So as per the given situation, the option b is correct
These selected condensed data are taken from a recent balance sheet of Sanson Company (in millions of dollars). Cash Accounts receivable Inventory Other current assets Total current liabilities $ 7.2 14.4 18.0 11.1 24.8 Additional information: Current liabilities at the beginning of the year were $35.6 million.
(a) What is the working capital? ____________
(b) What is the current ratio? _____________
Answer:
a. Working capital = Current Assets - Current Liabilities
Working capital = (Cash + Accounts receivable + Inventory + Other current assets) - Total current liabilities
Working capital = ($7.2 + $14.4 + $18.0 + $11.1) - $24.8
Working capital = $50.7 - $24.8
Working capital = $25.9
b. Current ratio = Current Assets / Current Liabilities
Current ratio = $50.7 / $24.8
Current ratio = 2.04 : 1
Schultz v. Capital International Security, Inc. 460 F.3d 595 (4th Cir. 2006) Facts: The plaintiff-agents provided security services for Schultz and his family at his Virginia residence in twelve-hour shifts. The agents were paid a daily rate for each shift; they received no extra pay for overtime. The agents had a command post at the residence, from which they observed security camera monitors, answered the telephone, and kept a daily log of all arrivals and departures. They also made hourly walks of the property, ensured that members of his family were safe when departing and arriving, sorted mail, and performed various tasks upon request of his family. In addition to their security duties, the agents were responsible for having the household’s vehicles washed and fueled, making wake-up calls, moving furniture, and doing research on the Internet. Schultz's long-time driver and travel agent, Sammy Hebri, formed a company called Capital International Security, Inc. (CIS). Hebri started CIS for the purpose of becoming Schultz's security contractor. Hebri sent a memo (dated July 24, 2002) to the agents directing them to obtain their own private security business licenses from the VDCJS and individual liability insurance so they could be classified as independent contractors. Issue: The issue is whether the bodyguards were considered to be employees or independent contractors for the purpose of the Fair Labor Standards Act. Action: You must respond to all questions below. You must use at least three sources from the class materials and do independent research. Do not combine the five discussion questions and please use the outline below for your paper. Use of the outline will help you organize your research and comments and ensure you do not miss any questions that must be addressed. Your responses to each question must be in narrative format not bullets. Use the headings below to organize your paper.
Question 1A - a. Summarize the relevant facts of the case. What is your opinion on the outcome of this case?
Question 1c - Classification Test: In the above case, what kind of classification test could have been used and what would be the result?
Answer:
Hence the answer is given as follows,
Explanation:
1A) In the given case, the agents who are the plaintiffs were working as security guards for Schultz and his family. There was miscellaneous work that they were required to conduct for the family. The agents were paid a daily wage and weren't paid overtime. Schultz’s driver opened a replacement company called CIS and asked the agents to get their own private security business licenses in order that they will get classified as independent contractors. So, the difficulty arises that whether the agents should be classified as employees or as independent contractors.
The agents were paid a daily wage and not a salary. Moreover, they weren't qualified for overtime pay. Employees usually get salaries and are eligible to urge over time by the overtime work. Hence the agents are independent contractors and can't be considered employees.
1C) In the given case, a hybrid classification test is often wont to check the status of whether the agents were employees or independent contractors. A hybrid classification test has characteristics of right to regulate test also as economic realities test. Schultz and his family weren't controlling the work of the agents. The agents had pre-determined work and that was conducting it in an independent manner. The agents also were paid on a day to day and didn't have a timekeeping requirement. Hence the agents can qualify as independent contractors and not employees as per the hybrid classification test.
_______________ skills, though developed through job training and work experience, are generally acquired during the course of your formal education.
a. Interpersonal
b. Technical
c. Conceptual
d. Communication
Answer:
D
Explanation:
lannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company
Answer:
$2,200,000
Explanation:
Margin of safety means by how much sales can fall before a firm starts making a loss.
Margin of safety = Current Sales - Break even sales
where,
Break even sales = Fixed Cost ÷ Contribution margin ratio
= $800,000 ÷ 0.40
= $2,000,000
therefore,
Margin of safety = $4,200,000 - $2,000,000
= $2,200,000
Task performance is defined as: Activities that transform raw materials into the goods and services that are produced by the organization. Activities that help with the transformation process by replenishing the supply of raw materials. A and B Offering help and cooperating with others.
Answer:
The correct option is A and B.
Explanation:
Task performance can be described as actions that convert raw materials into the goods and services which a company produces, as well as actions that aid in the conversion process by restocking raw materials, distributing finished products, or providing critical planning, supervising, staff functions, or coordination that promote effective and efficient functioning of the organization.
Based on the description above, the correct option is A and B. That is, task performance is defined as activities that transform raw materials into the goods and services that are produced by the organization, and activities that help with the transformation process by replenishing the supply of raw materials.
Turner's has $3.8 million in net working capital. The firm has fixed assets with a book value of $48.6 million and a market value of $54.2 million. Martin amp; Sons is buying Turner’s for $61.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that Martin amp; Sons will record on its balance sheet as a result of this acquisition?
a. $0
b.$3.5 million
c. $6.6 million
d. $7.2 million
e. $9.1 million
Situation 2: You are a Department Head* of Generation Z. You are going to arrange a session for your team.
How you communicate with a guest to take a session on behalf of our organization. The things to be aware of,
1. The guest is not familiar with you.
2. You have to manage him/her to take a session without a monetary benefit.
3. You have to Communicate with him/her through social media
4. The person is so friendly to communicate with new people.
Note: You have to manage a session for your own department. If you are in the Graphics Team then consider yourself as Graphics Designing Head and you have to arrange a session related to it.
Ans.
Answer:
As a Department Head* of Generation Z who is charged with communicating with a guest to take a session on behalf of the organization who is not familiar with me, has to communicate via social media and manage the guest to take a session without monetary benefit, then the following steps should be considered:
1. Reach out to the guest on social media
2. Explain how important his presence would be important to the company
3. Explain that his services would have to be without monetary payment
4. Discuss ways that his presence would be beneficial to his public image
Shoe Barn Inc. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $2 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 12. What will the estimated intrinsic value of the Shoe Barn Inc.'s stock?
Answer:
$24
Explanation:
Calculation to determine What will the estimated intrinsic value of the Shoe Barn Inc.'s stock
Using this formula
Estimated intrinsic value = Earnings * P/E Ratio for the industry
Where,
EPS = $2
Industry P/E = 12
Let plug in the formula
Estimated intrinsic value= $2 * 12
Estimated intrinsic value= $24
Therefore the estimated intrinsic value of the Shoe Barn Inc.'s stock is $24
Description Term or Phrase 1. An assessment of whether financial statements follow GAAP. 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States. 4. Accounting professionals who provide services to many clients. 5. Principles that determine whether an action is right or wrong.
Answer: See explanation
Explanation:
1. An assessment of whether financial statements follow GAAP. = Audit
2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. = Net income
3. A group that sets accounting principles in the United States. = Financial Accounting Standard Board (FASB)
4. Accounting professionals who provide services to many clients. = Public accountant
5. Principles that determine whether an action is right or wrong.= Ethics
An assessment of whether financial statements follow GAAP: This is known as an "audit" or "financial statement audit." It involves an examination of financial statements to ensure that they have been prepared in accordance with Generally Accepted Accounting Principles (GAAP), which are the standard accounting principles and guidelines used in the United States.
What are the responses to other questions?2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues: This is referred to as "profit" or "net income." It represents the remaining funds after deducting all expenses, including operating costs, taxes, interest, and other relevant expenditures, from the total revenues generated by the business.
3. A group that sets accounting principles in the United States: This group is called the "Financial Accounting Standards Board" (FASB). FASB is an independent, private-sector organization responsible for establishing and improving accounting standards in the United States. Their goal is to ensure transparency and consistency in financial reporting.
4. Accounting professionals who provide services to many clients: These professionals are known as "public accountants" or "certified public accountants" (CPAs). They offer accounting and financial services to various clients, including individuals, businesses, nonprofit organizations, and government entities. CPAs are typically licensed and regulated by state boards of accountancy.
5. Principles that determine whether an action is right or wrong: These are referred to as "ethical principles" or "ethical standards." They provide guidance on what is considered morally right or wrong in the context of accounting and business practices. Ethical principles in accounting include integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. They serve as a framework for accountants to maintain ethical conduct and make informed decisions.
learn more about GAAP: https://brainly.com/question/28345482
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7. During January 2005, an Italian invested in the Italian stock market and earned a return of 1.47%. During the same month, an American investor investing in the Italian stock market earned a return of –2.358%.
Answer:
Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.
a) O quadrado de um número real x.
b) O cubo de um número real y.
c) O triplo de um número adicionado ao dobro de um número k.
d) A terça parte de um número real diminuído 7.
Explanation:
Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.
a) O quadrado de um número real x.
b) O cubo de um número real y.
c) O triplo de um número adicionado ao dobro de um número k.
d) A terça parte de um número real diminuído 7.
What percentage of income is spent on lottery tickets by Instructions: Enter your responses rounded to two decimal places. a. A low-income family with an income of $20,000 per year
Answer:
a. The percentage of income spent on lottery tickets by a low-income family with an income of $20,000 per year is 5.50%.
b. The percentage of income spent on lottery tickets by a middle-income family with an income of $60,000 per year is 0.50%.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.
Explanation of the answers is now provided as follows:
a. What percentage of income is spent on lottery tickets by a low-income family with an income of $20,000 per year.
From the attached question, we have:
Amount spent by households with less than $25,000 of income a year on lottery tickets = $1,100
Therefore, we have:
Percentage spent by family with $20,000 income per year on lottery tickets = (Amount spent by households with less than $25,000 of income a year on lottery tickets / $20,000) = ($1,100 / $20,000) * 100 = 5.50%
Therefore, the percentage of income spent on lottery tickets by a low-income family with an income of $20,000 per year is 5.50%.
b. What percentage of income is spent on lottery tickets by a middle-income family with an income of $60,000 per year.
From the attached question, we have:
Amount spent by households with more than $50,000 of income a year on lottery tickets = $300
Therefore, we have:
Percentage spent by family with $60,000 income per year on lottery tickets = (Amount spent by households with more than $50,000 of income a year on lottery tickets / $60,000) * 100 = ($300 / $60,000) * 100 = 0.50%
Therefore, the percentage of income spent on lottery tickets by a middle-income family with an income of $60,000 per year is 0.50%.
Match each description 1 through 6 with the characteristic of preferred stock that it best describes by writing the letter of that characteristic in the blank next to each description.
A. Callable
B. Convertible
C. Cumulative
D. Noncumulative
E. Nonparticipating
F. Participating
_____ 1. Holders of the stock are entitled to receive current and all past dividends before common stockholders receive any dividends.
_____ 2. The issuing corporation can retire the stock by paying a prespecified price.
_____ 3. Holders of the stock can receive dividends exceeding the stated rate under certain conditions.
_____ 4. Holders of the stock are not entitled to receive dividends in excess of the stated rate.
_____ 5. Holders of this stock can exchange it for shares of common stock.
_____ 6. Holders of the stock lose any dividends that are not declared in the current year.
Answer and Explanation:
The classification is as follows
a. In the callable, the corporation who issued could retired the stock by payoff the mentioned price
b. In the convertible, the stockholders could able to exchange for the common stock shares
c. In the cumulative, the stockholders should received the current as well as the past dividends prior to the common stockholders
d. In the non-cumulative, the stockholders should lose the dividend that not declared in the present year
e. In the non-participating, the stockholders should not received any dividend that more than the stated rate
f. In the participating, the stockholder should received any dividend that more than the stated rate
The Bronco Corporation exchanged land for equipment. The land had a book value of $131,000 and a fair value of $172,000. Bronco received $21,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment
Answer: $151,000
Explanation:
The fair value of the equipment is the amount that was less than the fair value of land by the amount of cash that the equipment owner had to pay to complete the transaction:
Fair value of equipment = Fair value of land - Cash paid by owner of equipment
= 172,000 - 21,000
= $151,000
An asset has an average return of 5 percent and a standard deviation of 10 percent. Which of the following statements is true?
a. its variance is 25,
b. its coefficient of variation is 2.0
c. if returns are normally distributed, 95 percent of the time its returns will fall between -5 percent and 15 percent
d. if returns are normally distributed, 99 percent of the time its returns will fall between -15 percent and 25 percent.
Answer: b. its coefficient of variation is 2.0
Explanation:
The Coefficient of Variation, given the above data, is calculated by the formula:
= Standard Deviation/ Mean
= 10% / 5%
= 2.0
Option B is therefore correct.
Changes in the products for which a nation has a comparative advantage create sectoral shocks leading to an increase in frictional unemployment. a. True b. False
Answer: False
Explanation:
Frictional unemployment is a natural unemployment that results when people enter the labor force for the first time and when people move from one job to another. It is therefore not caused by sectoral shocks and every economy, even the best performing ones, will have frictional unemployment.
The unemployment that results from sectoral shocks is cyclical unemployment. This one is not natural and results from the business cycle and shocks to the economy.
the common sources of secondary data in tourism research are
Explanation:
Secondary data sources, such as industry statistics, surveys/censuses, and big data indicators, cover a wide array of topics that can be leveraged in tourism research..
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On January 1, 2019, Eagle Company borrows $23,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $7,099, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022. Prepare the journal entries for Eagle to record the note's issuance and the four payments
Answer:
See below
Explanation:
January 01, 2019
Cash Dr $23,0000
______________Notes payable Cr $23,000
December 31, 2019
Interest expense Dr $2,070
($23,000 × 9%)
Notes payable Dr $5,029
____________________Cash Cr. $7,099
December 31, 2020
Interest expense Dr $1,617
($23,000 - $5,029) × 9%
Notes payable Dr $5,082
_________________ Cash Cr $7,099
December 31, 2021
Interest expense Dr $1,160
($23,000 - $5,029 - $5,082) × 9%
Notes payable Dr $5,939
___________________ Cash Cr $7,099
December 31, 2022
Interest expense Dr $626
($23,000 - $5,029 - $5,082 - $5,939) × 9%
Note payable Dr $6,473
_____________________ Cash Cr $7,099