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on november 1, lance co. borrows $90,000 cash from first bank by signing a 90-day, 5% interest-bearing note. on december 31, lance will record an adjusting entry by crediting in the amount of .

Answer

As per the given information, an adjusting entry will be made on December 31 by crediting INTEREST PAYABLE for $750. This amount has been calculated as: Interest Payable = $90,000 * 0.05 * (60/360) = $750. In the world of finance and economics, interest refers to the amount paid by a borrower or deposit-taking financial institution to a lender or depositor over and above the principal sum borrowed, at a specified rate. This is different from a fee that a borrower may pay to the lender or a third party. It is also distinct from dividends, which are paid by a company to its owners/shareholders from its profits or reserves, but not at a predetermined rate. Instead, it is distributed on a pro rata basis, as a share in the reward earned by risk-taking entrepreneurs when the revenue earned exceeds the total costs. To know more about interest, follow this link: brainly.com/question/2294792 #SPJ4