A Company Loaned $6,000 to Another Corporation on December 1,Year

question 98

Short Answer

A company loaned $6,000 to another corporation on December 1,Year 1,and received a 90-day,10 percent,interest-bearing note with a face value of $6,000.The lender's December 31,Year 1,adjusting entry is

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Definitions:

Medical Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses incurred from illness or injury, or reimburses the insured for expenses incurred from such incidents.

Unemployment Taxes

Taxes imposed on employers, based on the amount of wages paid to employees, used to fund unemployment compensation programs.

Gross Wages

The total amount of salary or wages earned by an employee before any deductions or taxes are applied.

Social Security

A governmental program providing financial assistance to people with inadequate or no income, especially the elderly, disabled, and families with dependent children.