Answer:
Explanation:
Interest expense refers to charges paid for borrowing money. It is the money that a lender charges borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.
Given that:
Moonbooks received $79,380 = principal amount of debt (P)
The interest rate (r) = 8% annually = 0.08.
Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350
For the second year i.e 2019 The principal amount of debt = $79380 + $6360 = $85730
Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858
Answer:
see below
Explanation:
Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.
Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.
Answer:
yaah lower is only the answer
Answer:
The totals of Trial balance have a difference of $8,000. The credit balance totals of Trial balance is higher than the debit totals because the original entry of debit is mission and there is an wrong posing on the credit side which reduce the debit balance by $4,000 and Increase the credit balance by $4,000 at the same time. Net effect will be $8,000 in totals of trial balance.
