All categories

2 years ago

Capitalization of interest is adding accrued

1 answer:

6 0

It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

#SPJ1

You might be interested in

Musashi lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $704,000 from selling piano

Gnoma [55]

Answer:

Explicit costs are actual costs which Yakov must make while implicit costs are opposite of explicit costs, Implicit costs are opportunity costs.

Grouping them, we have the following;

•The wages and utility bills that Yakov pays. => Explicit costs

•The salary Yakov could earn if he worked as a paralegal.=>Implicit Costs

•The wholesale cost for the pianos that Yakov pays the manufacturer. => Explicit costs

•The rental income Yakov could receive if he chose to rent out his showroom =>Implicit Costs

2) Yakov's accounting and economic profit of his piano business.

Profit($)

Acct Profit.......... Economic Profit

$14,000. .............. -$9,000 (loss)

•Yakov's accounting profit will be his revenue - explicit costs.

Therefore accounting profit=

$704,000 - ($404,000 - $286,000) = $14,000

• Yakov's economic profit will be (accounting profit - (rent + forgone salary)

Therefore, accounting profit =

$14,000 - ($3,000+$20,000) = -$9,000

4 0

4 years ago

Talbot Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the

Goshia [24]

Answer:

See answers below in the explanation

Explanation:

Journal Entries :

Journals

<u>Date Account and Explanation Debit Credit </u>

a Accounts receivable 210300

Service Revenue 210300

(Record earned revenue)

Cash 62300

Service Revenue* 62300

(Record earned revenue)

b cash 199100

accounts receivable** 199100

(Record collection Account)

*$41000+$20500=$62300

**$4400+$210300-$$15600=$199100

c Supplies 62900

Accounts Payable 62900

(record purchase of supplies on credit)

d Supplies 7400

Cash 7400

(record purchase of supplies

e Wages Payable 14200

Cash 14200

Record Payment of previous wages

Wages Expenses 112000

Cash 112000

(Record Payment to Employees)

f Income Tax payable 15100

cash 15100

(Record Payment of Income taxes

g Accounts Payable 73000

cash 73000

(record payment of account)

h Interest Expense 2700

Interest Payable 2700

Cash*** 5400

(Record Payment of Interest)

i No journal entry required

j Property Taxes Expense 17000

cash 17000

(Record payment of property taxes)

k Dividends 7200

Cash 7200

(Record Payment of dividends)

*** $60000*9%=$5400

6 0

3 years ago

Which of the following is true of good salespeople?

iogann1982 [59]

Answer:

Correct answer is A, They know how to oversell their product so the customer can't say no. Explanation: Good salespeople are those who sell more and more of their company's product.

3 0

3 years ago

A sample consensus formula for fluid replacement recommends that a balanced salt solution be administered in the first 24 hours

sp2606 [1]

Answer:

A 176-lb (80-kg) man with a 30% burn should receive a minimum of 2,400 ml of fluid replacement in the first 8 hours

The answer is option b. 2,400 ml

Explanation:

<em>Step 1: Determine total minimum ml per percentage of burn</em>

Minimum ml per kg=2 ml

The man is 80 kg

Total minimum ml to be administered per percentage of burn=minimum ml per kg×weight of the man

replacing;

Total minimum ml to be administered= 2×80=160 ml per percentage

<em>Step 2: Determine total minimum ml in the first 24 hours</em>

This can be expressed as;

Total minimum ml to be administered=Total minimum ml to be administered per percentage of burn×percentage of burn

where;

Total minimum ml to be administered per percentage of burn=160 ml per percentage of burn

percentage of burn=30%

replacing;

Total minimum ml to be administered in the first 24 hours=160×30=4,800 ml

<em>Step 2: Determine total minimum ml in the first 8 hours</em>

total minimum ml to be administered in the first 8 hours=50%×4,800

(50/100)×4,800=2,400 ml

A 176-lb (80-kg) man with a 30% burn should receive a minimum of 2,400 ml of fluid replacement in the first 8 hours

6 0

3 years ago

Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The compa

Nataly [62]

Answer:

Sup 1 $7,415,250

Sup 2 $7,394,080

I will pick supplier 2 as their total cost is lower.

With the assumption of point b:

Supplier 1 $ 7,412,612

Supplier 2 $ 7,419,296

Explanation:

We must use the values for 1 to 1,499 units as we are constrained to a maximum of 1,100 lot size.

Weight of the lot:

1,100 x 25 pounds = 27,500 we do not achieve truckload

So we use the 1.20 per ton-mile

27,500 / 2,000 = 13.75 tons

13.75 tons x $1.20 each x 100 miles x 12 per year = $23,760

13.75 tons x $1.20 each x 120 miles x 12 per year = $19,800

Order cost $230 x 12 per year = $ 2,760

$\left[\begin{array}{cccc}&$Supplier 1&$Supplier 2&$Differential\\$Demand&13200&13200&0\\$Unit Cost&553&552&-1\\$Goods cost&7299600&7286400&-13200\\$Tooling Cost&28300&24400&-3900\\$Truckload&23760&19800&-3960\\$Order Cost&2760&2760&0\\$Holding Cost&60830&60720&-110\\$Total Inventory Cost&7415250&7394080&-21170\\\end{array}\right]$

Truckload: 42,000 / 25 = 1,680 units

new logistic cost:

13,200 / 1,680 = 7.85

This will mean 7 full travels and then another travel with less than full-load with As we cannot send "0.85" of a full load truck

13,200 - 1,680 x 7 = 1,440 units

Logistic cost:

42,000 / 2,000 x $0.80 each x 100 miles x 7 travels

+ 1,440 x 25 / 2000 x $1.20 each x 100 miles = 13920

42,000 / 2,000 x $0.80 each x 120 miles x 7 travels

+ 1,440 x 25 / 2000 x $1.20 each x 120 miles = 16,704

Order Cost: 8 orders x 230 = $1,840

Holding Cost: 1,680 untis / 2 x $551 or $552 x 20%

$\left[\begin{array}{cccc}&Supplier 1&Supplier 2&Differential\\$Demand&13200&13200&0\\$Unit Cost&551&552&1\\$Goods cost&7273200&7286400&13200\\$Tooling Cost&28300&24400&-3900\\$logistic cost&16704&13920&-2784\\$Order Cost&1840&1840&0\\$Holding Cost&92568&92736&168\\$Total Inventory Cost&7412612&7419296&6684\\\end{array}\right]$

3 0

3 years ago