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Kamila [148]
3 years ago
6

On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. Th

e loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 12% promissory note. Interest was payable at maturity. Quantum’s fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Quantum Technology. 2. & 3. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2018 and journal entry for the payment of the note at maturity.
Business
1 answer:
coldgirl [10]3 years ago
5 0

Answer:

cash        16,000,000 debit

 note payable    16,000,000 credit

-- to record issuance of the note--

interest expense    240,000 debit

  interest payable          240,000 credit

--to record december 31th adjsuting entry--

note payable       16,000,000 debit

interest expense   1,200,000 debit

interest payable       240,000 debit

       Cash                         17,440,000 credit

-- to record honor of the note --

Explanation:

Timeline

<--//---------------//-------------------------//-->

 Issuance    adjusting entry        maturity

Issuance: the note enter the accounting at his face value along with the cash received.

adjusting entry at year-end

the company recognize the accued interest expense for 2 complete months (Nov 1st to Dec 31th)

16,000,000 x .12 x 2/12 = 240,000

at maturity Quantum Technology pays the principal and interest:

16,000,000 x .12 x 9/12 = 1,440,000

but a portion of this interest are accrued already an recognize as a payable so we write-them off.

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Answer:

Universality of management

Explanation:

As the name suggest the management is universal that means the same technique, same procedure, policies, rules, regulations, etc are applicable in all level of the organizations i.e top, middle and lower level of management plus it also applies on the various size of the organizations and the working locations so that the efficiency and effectiveness of the task or work could be done in a smooth manner

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Without _____, leaders can miss important signals that something is going wrong. question 2 options:
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<span>Without feedback, leaders can miss important signals that something is going wrong.
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3 years ago
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relatin
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Answer:

A: we reocrd at cost, which is the discounted price:

40,000 x (1 - 2%) = 39,200

Equipment 39,200 debit

          Cash               39,200 credit

B: we discount the note implicit interest:

42,000 / 1.12 = 37,500

Equipment    37,500 debit

    Note payables          37,500 credit

C: Because; there is commercial substance we recognize the loss on the old equipment as the book value is 13,500 while it is being traded at 8,500

We write off, post the cash used and the loss. The new equipment enter the accounting for the difference to blaance the entry:

equipment           45,500 debit

acc depreciation 15,500 debit

loss at disposal    5,000 debit

                 cash         37,000 credit

                 equipment 29,000 credit

D: we evaluate the equipment at fair value

Equipment      40,000 debit

  common stock              2,500            credit

  additional paid-in         37,500           credit

We now it is no-par therefore there is an additional paid in.

<em>As we aren't provide with the face value we assume is 1 dollar.</em>

Explanation:

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charger company's most recent balance sheet reports total assets of $28,413,000, total liabilities of $16,113,000 and total equi
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The debt to equity ratio for the period, based on the total liabilities and total equity, would be  1.31

<h3>How to find the debt to equity ratio?</h3>

The debt to equity ratio shows the amount of debt that a company has as a ratio of the debts to the equity that the company has.

The debt to equity ratio can be found by the formula:

= Total liabilities / Total Equity

Total liabilities = $16, 113, 000

Total equity = $12, 300, 000

The debt to equity ratio is therefore:
= 16, 113, 000 / 12, 300, 000

= 1.31

Find out more on the debt to equity ratio at brainly.com/question/27993089

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Answer:

The buyer would have a 12-day option to terminate the contract. Otherwise, he or she might not have any other option than to stick to the contract. (That is, the buyer will not have the unrestricted right to terminate the contract again.)

Explanation:

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