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Mac,Incpurchased a Truck on October 1,2011 in Exchange for a 12-Month,9%,$100,000

question 115

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Mac,Inc.purchased a truck on October 1,2011 in exchange for a 12-month,9%,$100,000 note.What effect does the October 31,2011 adjusting entry for interest have on the company's total liabilities?


Definitions:

Reactive Power

The component of electrical power that does not result in useful work, measured in VARs (volt-amps reactive), and is generated by reactive components like capacitors and inductors.

Inductive Reactance

A measure of the opposition that an inductor presents to alternating current, due to the magnetic field created by the current.

Capacitive Reactance

The resistance that a capacitor offers to alternating current, depending on the frequency of the current and the capacitor value, measured in ohms.

AC Circuit

A circuit in which the current changes direction periodically, powered by an alternating voltage source.

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