ACCT 201 1st Edition Lecture 12Outline of Last Lecture I. More examples of credit and debitOutline of Current LectureII. Calculating interest and putting in into the accounting equationCurrent LectureWe borrow $1000 on 1/1/14 pay in full on 6/1/14. We will pay 10% interest on 6/1/14A = L + SE 1000 100/12 = 8.3/month1/1 +1000 +1000 x .10 cash acct. pay. 100/yr.1/31 +8.30 int. payable -8.30 int. expense*Interest is always for one yearWe lent $1000, get 10% interestA = L + SE1/1 -1000 cash +1000 acct. receivable1/31 +8.3 int. pay. -8.3 int. expensePay $100 per day, 5 days a week Mon.-Fri. after work.A = L + SEOn payday: -500 cash -500 wage expense1/31(Wed.): +300 wage payable -300 wage expense2/2 (Fri.): -500 cash -300 wage payable -200 wage expenseThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Refer to pg.
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