Content Assessment pr 9 at 3:23pm Instructions Question 11 On March 1, 2016, Eme

Question

Content Assessment pr 9 at 3:23pm Instructions Question 11 On March 1, 2016, Emerson Services issued a 9% long-term notes payable for $20,000. It is pay over a 5-year term in $4,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2017. Each yearly installment will include both principal repayment of $4,00 interest payment for the preceding one-year period. On March 1, 2017,The accounting period ends on December 31 O Emerson will receive $4,000 as an installment payment O Emerson must accrue the coming $4,000 as the current portion of principal payment O Emerson must pay $1,800 of interest to the note holder O Emerson must accrue $4,000 of Interest Expense 4 Previous Nex No new data to save. Last checked at 3:56pm Subm

Explanation / Answer

Question 11 - "Emerson must pay $1800 of interest to the note holder"

In this case, Emerson Services issued 9% long term note payable for $20,000. Therefore, Emerson must pay $1800 of interest to the note holder

Interest Amount = $20,000 x 9% = $1,800

Question 13 - "Debit to Interest Expense for $48,034"

Debit to Interest Expense for $48,034

Credit to Cash = $10,22,000 x 4.5% = $45,990

Credit to Discount = ($10,22,000 x 4%) / 20 Years = $2044

Total Debit will be $45990 + $2044 = $48,034

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.