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3 years ago

Trell Corporation transferred $50,000 of accounts receivable to a local bank. The transfer was made

Business

1 answer:

Arlecino [84]3 years ago

7 0

Answer: d. $6,500.

Explanation:

The question makes it seem quite complicated but it's not. In calculating the amount Trell will receive from the factor we do the following,

We take the fair value of Trell's 20% interest of $8,000 and subtract the factoring fee from it.

The factoring fee is,

= 50,000 * 3%

= $1,500

Subtracting it we have,

= 8,000 - 1,500

= $6,500.

Trell will show an amount receivable from factor of $6,500 so option D is correct.

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Network Analytics Inc. (NAI) recently made a sale to a foreign trading partner, but the customer does not need to make a payment

emmainna [20.7K]

Answer:

The question is missing the options which can be found in the attached.

The correct option is banker's acceptance

Explanation:

Banker's acceptance is a guarantee by a bank to the exporting party to pay a sum of money at specific date.

In international business, exporters would require additional security against their receivable usually request for a banker's acceptance also known as bill of exchange.

The bank pays the exporter a discounted amount as agreed then chase the importer for the full value of the transaction.The difference between the discounted amount paid by the bank and the full value recoverable from the importer is the bank's margin.

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3 years ago

Strickland Company owes $202,900 plus $18,600 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2

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Answer:

a. Strickland Company (Debtor)

Date Account Title and Calculation Debit Credit

Notes payable $202,900

Interest payable $18,600

Accumulated depreciation (Machine) $218,689

Machine $397,600

Gain on disposition of machine $7,080

(186,000 + 397,000 - 218,680)

Gain on debt restructuring $35,500

[(202,900 + 18,600) - 186,000]

Moran State Bank (Creditor)

Date Account Title and Calculation Debit Credit

Machine $186,000

Allowance for Doubtful accounts $35,000

Notes receivable $202,900

Interest receivable $18,600

b. Gain on machine disposition and the gain on debt restructuring should be reported as an ordinary gain in the income statement.

c. Strickland Company (Debtor)

Date Account Title and explanation Debit Credit

Notes payable $202,900

Interest payable $18,600

Common stock $112,000

Additional paid-in-capital $74,000

Gain on debt restructuring $35,500

Moran State Bank (Creditor)

Date Account Title and explanation Debit Credit

Investment Trading $186,000

Allowance for Doubtful accounts $35,500

Notes receivable $202,900

Interest receivable $18,600

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3 years ago

Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece

Strike441 [17]

Answer:Yes it should be reported.

$2.8 million should be reported in the the balance sheet as a liability.

Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.

Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.

If the value can be estimated, then the liability has a higher chance of being realised.

Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.

Therefore the $2.8 million liability should be reported in its 2018 balance sheet

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3 years ago

Contingent Liabilities must have the following criteria (select all that apply): Select one or more: A. The obligation is certai

Leya [2.2K]

Answer: Option B and C

Explanation: In simple words , contingent liabilities refers to the liabilities the occurrence of which depends on the happening of an event that may or may not occur in the future.

These are recorded in the accounts only when the payment is to be made in future and that payment could be reasonably estimated.

Hence the correct option is B and C

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3 years ago

The Wilson Company purchased $35,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,800 for freight costs

Olin [163]

Answer:

Option A, total debits to the inventory account would be $37,800, is correct

Explanation:

The cost of the merchandise inventory to Wilson Company is the cost of the inventory purchased and the freight-in cost.

In other words, the amount to be recognized in merchandise inventory account is the sum of both amounts i.e $35,000+$2800=$37,800

This would be debited to merchandise inventory and $2,800 would be credited to the cash account while $35,000 is credited to accounts payable

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3 years ago