Dennis Rogers and Betty Chin Opened a New Art Gallery

question 48

Short Answer

Dennis Rogers and Betty Chin opened a new art gallery. To help them get started, they borrowed $18,500 for one and one-half years at 8% ordinary simple interest (360-day year). Compute the total amount that they will repay.

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Definitions:

Cash Receipts

Inflows of cash, often from sales, interest, or dividends.

Supplies Expense

Costs incurred for items used in the operation of a business, not directly tied to the production of goods or services.

Journalize

The process of recording transactions in the journal, a step in the accounting cycle that precedes posting to ledgers.

Transaction Recording

The process of documenting financial transactions in appropriate accounting records, ensuring accurate financial reporting.