Franklin company issued a $40,000 note to the mercantile bank on august 1, year 1. the note carried a one-year term and a 12% rate of interest. how will the adjustment, dated december 31, year 1, to record accrued interest expense impact the elements of the financial statements?

multiple choice

decrease assets and decrease retained earnings by $2,000

increase liabilities and decrease equity by $2,000

increase liabilities and decrease equity by $1,600

decrease equity and increase liabilities by $4,800

the following account balances were taken from the adjusted trial balance of kendall company:

revenues $ 26,900
operating expenses 16,500
dividends 6,000
retained earnings 18,500
what is the retained earnings account balance that will be included on the post-closing trial balance?

multiple choice

$28,900.

$22,900.

$4,400.

$10,400.

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Why is it vital to maintain a designer worksheet? a. it separates the designs chosen for the season from those rejected by the company. b. it keeps a record of all designs created by the designer for a season. c. it charts out the development of an entire line through the season and beyond. d. it tracks the development of a design along with costing and production details. done

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is