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nata0808 [166]
3 years ago
12

Q 10.25: Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1st. Givens Brick Company signs a $600,000,

8%, 9-month note. Assuming that interest has already been accrued to September 30th, what entry will Givens Brick Company make to pay off the note and interest at maturity
Business
1 answer:
Shtirlitz [24]3 years ago
7 0

Answer:

Entry is given below

Explanation:

As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.

Entry                      DEBIT          CREDIT

Notes payable     $600,000

Interest                 $36,000(w)

Cash                                           $636,000

Working

Interest = $600,000 x 8% x9/12

Interest = $36,000

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What is the depreciation tax shield if EBIT is $600, depreciation is $1,800, and the tax rate is 30 percent
eduard

The depreciation tax shield based on the EBIT, the tax rate and the depreciation is $540.

<h3>How do you find the depreciation tax shield?</h3>

This can be found as:

= Depreciation x Tax rate

Solving gives:

= 1,800 x 30%

= $540

Find out more on the depreciation tax shield at brainly.com/question/24192125.

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5 0
2 years ago
Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 an
mart [117]

Answer:

The amount of the adjusting entry for bad debts at December 31 is C. $91,000

Explanation:

Adjustment entry is made on changes on the amount of provision for doubtful debts.

Increase in amount of  provision for doubtful debts increases the expenses in income statement.

Decreases in amount of  provision for doubtful debts decreases the expenses in income statement.

Allowance for Doubtful Accounts Balance  $35,000 (cr)

Allowance during th year                             $126,000

Increase in Allowance                                   $ 91,000

$ 91, 000 increase in allowance for doubtful debts increases the expenses in Income Statement

5 0
3 years ago
Market segmentation is
Juli2301 [7.4K]

Answer: Option (a) is correct.

Explanation:

Correct Option: Breaking down a large, heterogeneous market into sub markets that are more homogeneous.

Market segmentation is a process or procedure for dividing a large consumer market into sub markets or sub groups and this segmentation is on the basis of consumer's characteristics such as needs, location, interests.

It creates an advantage for the marketer because these market segments makes the job of marketers easier. It also reduce the risk of unsuccessful and unwanted marketer campaigns.

6 0
3 years ago
Charlena gives Megan the post of Vice-President of Procurement to express appreciation for Megan's hard work in stocking the she
Aliun [14]

Answer:

Apparent Authority

Explanation:

Based on the information provided within the question it seems that the authority that Charlene has given Megan is Apparent Authority. This term refers to a subtle authority given to an individual which a reasonable third party would understand that they are an agent acting on behalf of their employer. Such an example would be an employee driving a UPS truck, any reasonable person would see the UPS truck as a sign that the individual driving has authority to act on behalf of the UPS company. The UPS truck is similar to the business card that Megan has, giving her apparent authority to act on behalf of Thrift City.

8 0
2 years ago
Read 2 more answers
The government of an Asian country allows its currency to nominally float freely against other currencies, but the government ha
Elena L [17]

Answer: Dirty float system.

Explanation:

The dirty float system is also knowns as "managed float".

It is a floating exchange rate in which the central bank of a particular country steps in occasionally to alter the pace at which the country's currency change value. In this system, the central bank acts to prevent external economics shock and guide against its disruptive effect on the domestic economy.

4 0
3 years ago
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