Use the Following Information for Questions

question 54

Short Answer

Use the following information for questions
On October 1, 2012, Carla's Carpet Service Limited borrows $80,000 from Regional Bank by signing a 3-month, $80,000, 4% bank loan. Interest is due the first of each month.
-The entry by Carla's Carpet Service to record payment of the loan and accrued interest on January 1, 2013 is

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Definitions:

Opportunity Costs

The value of the next best alternative foregone as the result of making a decision.

Explicit Cost

The direct, out-of-pocket payment made by businesses for the use of resources.

Graphic Artist

A professional who creates visual content to communicate messages through digital and printed mediums.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, measuring the true profitability of an enterprise.