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Firdavs [7]
2 years ago
15

On June 30, 2024, the Esquire Company sold some merchandise to a customer for $54,000. In payment, Esquire agreed to accept a 7%

note requiring the payment of interest and principal on March 31, 2025. The 7% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025?
Business
1 answer:
Paraphin [41]2 years ago
5 0

The income before income taxes is 2024 understated by $1,890 and 2025 overstated by $1,890.

<h3>Income before taxes</h3>

Esquire Company journal entries

June 30, 2024

Debit Note receivable            $54,000

Credit Sales                              $54,000                  

Dec 31, 2024

Debit Interest receivable       $1,890

Credit Interest Income           $1,890

($54,000 x 7% x6/12)

March 31, 2025

Debit Cash      $56,835                      

Credit Interest receivable          $1,890

Credit Interest income          $945

($54000 x 7% x 3/12 )

Credit Note Receivable    $54,000

Therefore the income before income taxes is 2024 understated by $1,890 and 2025 overstated by $1,890.

Learn more about Income before taxes here:brainly.com/question/14644556

brainly.com/question/17005057

#SPJ1

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Barbara is a producer in a monopoly industry. Her demand​ curve, total revenue​ curve, marginal revenue​ curve, and total cost c
maks197457 [2]

Answer:

D

Explanation:

Profit is Maximize when MR = MC

since MR=40 - 0.5Q

and  MC= 4

Therefore:

40-0.5Q = 4

-0.5Q = 4 - 40

-0.5Q= -36

divide through by -0.5

Q = 72

since Q = 72

from Q = 160 - 4p

72 = 160 - 4P

-4p = 72 - 160

-4P = -88

divide through by -4

P = 22

5 0
3 years ago
The gross requirements of a given component part are determined from ______________________.
il63 [147K]

Answer: The correct answer is "c) planned orders of the parent".

Explanation: The gross requirements of a given component part are determined from <u>planned orders of the parent</u>

Without the release of planned orders from immediate parents, the gross requirements of a given component part could not be determined.

5 0
3 years ago
In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. T
Aleksandr-060686 [28]

Answer:

1500

Explanation:

Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.

The formula for calculating break even points = F / (P - V)

F = fixed cost

P = price

V = variable cost per unit

$270,000 / ($600 - $420) = 1500

I hope my answer helps you

6 0
3 years ago
Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (
tatuchka [14]

Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100

= 108.54

Return in percent:

= ( 108.54 - 100 ) ÷ 100

= 8.54%

Therefore, the value-weighted return for the index is 8.54%.

8 0
3 years ago
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the
Sphinxa [80]

Question:                                                                                                                                                                                                                                                                                  

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.      

A) saving; increased  

B) population growth; decreased

C) depreciation; decreased

D) total output growth; decreased

Answer

The correct answer is  A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.

Explanation

Golden Rule Level of the Capital Stock is the level at which

MPK = δ,

Where MPK is Marginal Product; and δ the depreciation rate;

so that the marginal product of capital equals the depreciation rate.

In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .  

5 0
3 years ago
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