Interest-bearing note transactions On November 7, 2018, Mura Company borrows $140,000 cash by signing a 90-day, 10% note payable with a face value of $140,000.

1. Compute the accrued interest payable on December 31, 2018.

Principal xRate (%) xTime =Interest
Total Through Maturity 160,000 8 90/360 3,200
Year end interest accrual 160,000 8 54/360 1,920
Interest Recognized Feb. 5 160,000 8 4/360 1,280

Prepare the journal entry to record the accrued interest expense at December 31, 2017 and payment of the note at maturity
Record the accrued interest expense.

2. Dec. 31, 2017
3. Feb 05, 2018

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

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Presented below is information for annie company for the month of march 2018. cost of goods sold $245,000 rent expense $ 36,000 freight-out 7,000 sales discounts 8,000 insurance expense 5,000 sales returns and allowances 11,000 salaries and wages expense 63,000 sales revenue 410,000 instructions prepare the income statement.