1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
geniusboy [140]
3 years ago
8

On June 1, Parson Assoc. sold equipment to Arleo and agreed to accept a 3-month, $55,000, 10% interest-bearing note in payment a

t a time when the prevailing rate of interest for similar transactions was 10%. When the note was collected upon maturity, Parson would recognize interest revenue of:
Business
1 answer:
goldfiish [28.3K]3 years ago
6 0

Answer:

Parson would recognize an interest revenue of $1375

Explanation:

The quoted interest rate on bond is the annual rate of interest. The bond is for 3 months which means that the interest revenue will be recorded for the 3 months period from June to August and the bond will mature on 31 August.

The interest revenue to be be recorded on this note is,

Interest Revenue = 55000 * 0.1 * 3/12   =  $1375

The entry to record the receipt of interest and face value will be,

Cash                              56375

    Interest revenue               1375

    Bonds Receivable            55000

You might be interested in
Ruston Company had Net Income for 2020 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2020. The e
Aloiza [94]

Answer:

$3,000,000

Explanation:

Calculation to determine the Net Cash Flow in 2020

STATEMENT OF CASH FLOW

For the Year 2020

Cash flow from operating Activities:

Net Income $6,200,000

Add Depreciation Expense $ 800,000

Net Cash provided by operating activities $7,000,000

($6,200,000+$800,000)

Cash flow from Investing activities:

Investment in Equipment ($4,000,000)

Net Cash used in Investing activities ($4,000,000)

Net Cash flow in 2020 $3,000,000

Depreciation under Straight Line method = (Cost - Salvage Value)/Useful Life

Depreciation under Straight Line method= (4000000-0)/5

Depreciation under Straight Line method= 800,000

Therefore the Net Cash Flow in 2020 is $3,000,000

4 0
3 years ago
Leader Corporation Company uses a job-order costing system with a single plantwide pre-determined overhead rate based on machine
taurus [48]

Answer:

Selling price per unit= $196

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

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

Predetermined manufacturing overhead rate= (400,000 / 50,000) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

<u>Now, we can allocate overhead and calculate the total cost:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*100= $1,400

Total cost= 1,400 + 750 + 2,750

Total cost= $4,900

<u>Finally, the selling price per unit:</u>

<u></u>

Unitary cost= 4,900/40= $122.5

Selling price= 122.5*1.6

Selling price= $196

3 0
3 years ago
What side of the manufacturing overhead account is actual manufacturing overhead entered on?.
Ludmilka [50]

Applied overhead goes on the credit side of the Manufacturing overhead of $120,700 was applied to production using the company's predetermined overhead rate

8 0
2 years ago
Vore Corp. bought equipment on January 2, 20X4 for $200,000. This equipment had an estimated useful life of five years and a sal
Harrizon [31]

Answer:

The accumulated depreciation balance at December 31, 20X5 should be: $91,800

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total asset cost - salvage value = $200,000 - $20,000 = $180,000

Depreciation was computed by the 150% declining balance method. Depreciation rate is 30%.

Depreciation for the year of 20X4 = 30% x $180,000 = $54,000

At the beginning of the second year, the Depreciable cost's book value = $180,000 - $54,000 = $126,000

Depreciation for the year of 20X5 =  30% x $126,000 = $37,800

The accumulated depreciation balance at December 31, 20X5 = $54,000 + $37,800 = $91,800

7 0
3 years ago
The ________ is the range of frequencies that a transmission medium (channel) can carry in a particular period of time.
polet [3.4K]
The answer is bandwidth
5 0
3 years ago
Other questions:
  • Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
    13·1 answer
  • What is a community college​
    6·1 answer
  • ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $10,000 a
    8·1 answer
  • On January 1, 2017, Teal Furniture Co. borrowed $6,100,000 (face value) from Gary Sinise Co., a major customer, through a zero-i
    10·1 answer
  • All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
    13·1 answer
  • For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for
    10·1 answer
  • Which of the following hiring procedures provides the most control over the accuracy of information submitted on an employment a
    7·1 answer
  • If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
    7·1 answer
  • has issued bonds that have a 8% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and
    13·1 answer
  • The scientific revolution established new methods of investigating the world, including?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!