On January 1, Year 1, Needham, Inc., borrowed $10,000 at 6% for four years. The note requires annual payments of $2,886 on December 31 of each year. For each item, select the amount as of or for the Year Ended December 31, Year 1, in the column of the one financial statement where the amount is found. What is Interest Expense?
A. (7,200); Income Statement
B. (2,286); Income Statement
C. (600); Income Statement
D. (300); Income Statement
E. (600); Statement of Cash Flows - Operating Activities
F. 7,714; Statement of Cash Flows - Operating Activities
G. (2,886); Statement of Cash Flows - Financing Activities
H. (2,286); Statement of Cash Flows - Financing Activities
I. (600); Balance Sheet
J. 7,114; Balance Sheet
K. 7,714; Balance Sheet
Answer: C. (600); Income Statement
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In a standard costing system, each input of direct materials, direct labor, and manufacturing overhead has a cost standard and an efficiency standard
Indicate whether the statement is true or false
When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices
A) reduce its production costs B) reduce its marketing costs C) maintain its current prices and profit margin D) increase its marketing budget to raise the perceived value of the product E) increase its production costs to improve the quality of the product