Question & Answer: the Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting en…..

Yankel Corporations controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2013: Credit Interest expense Debit 1,800 Interest payable 1,800 Insurance expense 60,000 Prepaid insurance 60,000 Interest receivable 3,000 Interest revenue 3,000 Additional information: 1. The company borrowed $30,000 on June 30, 2013. Principal and interest are due on June 30, 2014. This note is the companys only interest-bearing debt 2. Insurance for the year on the companys office buildings is $90,000. The insurance is paid in advance. 3. On August 31, 2013, Yankel lent money to a customer. The customer signed a note with principal and interest at 9% due in one year. Required: Determine the following 1. What is the interest rate on the companys note payable? 2. The 2013 insurance payment was made at the beginning of which month? 3. How much did Yankel lend its customer on August 31

the Yankel Corporation’s controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2013: 1. The company borrowed $30, 000 on June 30, 2013. Principal and interest are due on June 30, 2014. This note is the company’s only interest-bearing debt. 2. Insurance for the year on the company’s office buildings is $90, 000. The insurance is paid in advance. 3. On August 31, 2013, Yankel lent money to a customer. The customer signed a note with principal and interest at 9% due in one year. Required: Determine the following: 1. What is the interest rate on the company’s note payable? 2. The 2013 insurance payment was made at the beginning of which month? 3. How much did Yankel lend its customer on August 31?

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