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Verizon [17]
3 years ago
14

A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events fo

r calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.4. The CD matured on September 30, 2018.
Business
1 answer:
astra-53 [7]3 years ago
4 0

Answer:Please find answers in explanation column

Explanation:

1. Journal to record Short term borrowing

Date                 Account title                             Debit                  Credit

Feb. 1, 2018     Cash                                         $400,000

Tax anticipation notes payable                                                   $400,000

2.Journal to record  accrued interest payable on TAN)

Date                 Account title                             Debit                  Credit

Dec. 31, 2018   Expenditures – interest            $3,666.67  

Accrued interest payable                                                            $3,666.67  

Calculation :Accrued interest=  Principal x rate x period (time)

$400,000 x 1% x 11/12= $3,666.67  

3. Journal to record investment in  CD

Date                 Account title                             Debit                  Credit

April 1, 2018       Investments                            $100,000

                            Cash                                                                    $100,000

4.Journal To record redemption of CD with interest

Date                 Account title                             Debit                  Credit

Sept. 30, 2018          Cash                       $100,400

                               Investments                                                    $100,000

Cash Revenues – interest income                                                      $400

Calculation

Accrued Interest

Principal x rate x period (time= )100, 000 x 0.8 %x 6/12)= $400

Cash = Investment + interest= $100,000 + $400 = $100,400

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Costs, such as investigating the possibilities of and actually creating or acquiring a trade or business.
Mnenie [13.5K]

Answer:

Start up costs

Explanation:

By definition Startup costs "are the expenses incurred during the process of creating a new business". W can classified as pre start up costs and post start up costs.

For the pre start up costs we have for example research, borrowing costs, and expenses for technology and science.

For the post-opening startup costs we have advertising, promotion, and expenses related to the company.

So the best description for startp up costs is: "Costs, such as investigating the possibilities of and actually creating or acquiring a trade or business."

3 0
3 years ago
Extrinsically motivated behavior is that which is performed out of a desire to work for the welfare of society.a. Trueb. False
ipn [44]

Answer:  false

Explanation: Extrinsic motivation relates to actions motivated by incentives from the outside, such as wealth, popularity, promotions, and recognition. This form of motivation comes from the outside of the person, as contrasted to the internal motivation that comes from within the person.  

Extrinsic motivation is commonly defined as the inclination to participate in activities to receive some kind of perceived outward benefit. It is worth noting that either physical or mental in essence can be these incentives. Thus, from the above we can conclude that the above statement is false.

6 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,130,000 (190,00
SSSSS [86.1K]

Answer:

Estimated manufacturing overhead rate= $7.53 per direct labor hour

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $5,130,000 (190,000 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period.

We need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 1,430,000/190,000= $7.53 per direct labor hour

8 0
3 years ago
Suppose you hold a particular investment for 7 months. You calculate that your holding period return is 8.4 percent. What is you
Leni [432]

Answer:

The annualized return is 14.82%

Explanation:

The formula for annualized return is given as Annualized return = (1+ holding return)12/n - 1

Holding return is 8.4%

n is the holding period of 7 months

Annualized return =(1+0.084)^(12/7)-1

Annualized return =14.82%

It is wrong to simply calculate annualized return as 8,4%*12/7,which means one is taking the interest to annual interest by proportional method,as this gives 14.40%, in investment every basis point counts.

The difference between the two figures is 0.42% which could translate into millions depending on the amount invested as well as the duration of investment

6 0
3 years ago
What is the relationship between the gross public debt and the net public​ debt?
timofeeve [1]
The gross debt is the total amount of debt the gov. has issued . the difference is that the net debt does not include debt owned by the gov. to itself
3 0
3 years ago
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