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Strike441 [17]
3 years ago
13

Peachtree Company borrows $30,000 from the local bank at 7% interest. The term of the note is five years, and the annual payment

s remain constant at $7,317. Determine the decrease in notes payable that Peachtree Company should record in the first year.
a. $1,735.
b. $5,217.
c. $2,100.
d. $7,317.
Business
2 answers:
grandymaker [24]3 years ago
4 0

Answer:

B

Explanation:

Here, in this question, we are asked to determine the decrease in notes payable that peachtree should record in the first year.

To determine this, we proceed as follows;

Interest payment for the first year = 30000*7% i.e 2100

Principal amount paid = Total amount paid - Interest amount

= 7317 -2100 i.e 5217

Notes payable should be reduced by 5217

Leviafan [203]3 years ago
3 0

Answer:

b. $5,217.

Explanation:

Note annual payment includes the interest payment for the period and the residual of total payment made and interest is the the payment towards the principal value of the lease.

Total Loan value = $30,000

Annual Loan payment = $7,317

Interest for the period = $30,000 x 7% = $2,100

Principal Payment = $7,317 - $2,100 = $5,217

The Liability is decrease by $5,217

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Someone help me please?
laila [671]

Answer:

a) Cost of goods Manufactured = $610,000

b) Cost of sales = $ 580,000

c) Net income = $ 140,000

Explanation:

a)                                       Ferruccio Fashion

                     Schedule of Cost of Goods Manufactured

                             For the Year Ended 12/31/X2

                     Particular                                  $                               $

Direct Materials:

Raw Materials, 1 January                            40,000

Add: Purchase                                     <u>      180,000</u>

Materials available for use                       220,000

Less: Raw materials, 31 December     <u>       25,000</u>

Materials used                                                                            195,000

Direct Labor                                                                              <u> 200,000</u>

Prime Costs                                                                                395,000

Manufacturing Overhead:

Indirect Material                                           11,000

Indirect Labor                                               16,000

Plant Utilities                                                40,000

Depreciation, plant and equipment           60,000

Other                                                     <u>       78,000</u>               <u>   205,000</u>

Total Manufacturing Costs                                                        600,000

Add: Work-in-progress, 1 January                                               40,000

Less: Work-in-progress, 31 December                                   <u>   (30,000)</u>

Cost of goods manufactured                                                    610,000

b)                                   Ferruccio Fashion

                               Schedule of Cost of sales

                             For the Year Ended 12/31/X2

                     Particular                                                $

Finished goods inventory, 1 January                    20,000

Add: Cost of goods manufactured (<em>From a</em>)    <u>    610,000</u>

Goods available for sale                                       630,000

Less: Finished goods inventory, 1 January       <u>   (50,000)</u>

Cost of sales                                                         580,000

Now, this cost of sales will be used to find gross and net profit.

C)                          Ferruccio Fashion

                            Income Statement

                     For the Year Ended 12/31/X2

           Particular                                                 $

Sales Revenue                                              945,000

Less: Cost of sales (<em>From part B</em>)        <u>         580,000</u>

Gross Profit                                                    365,000

Less: Selling and administrative expenses  <u>145,000</u>

Income before income tax                           220,000

Less: Income tax expense                     <u>         80,000</u>

Net Income                                                     140,000

8 0
3 years ago
Which of the following is an example of a specific purpose? A. I want my employees to understand and follow the new dress code p
Alla [95]

Answer:

D. a and c

Explanation:

I hope it helps.

8 0
3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Ronch [10]
Last year mike bought 100 shares of Dallas corporation common stock for = $53 per share
he received this year dividends of = $1.45 per share
stock is currently selling for = $60 per share
rate of return = ?
capital yield %= (60 - 53 / 53) x 100 = 0.132  x 100 = 13.2%
dividend yield % = (1.45 / 53) x 100 = 0.0273 x 100 = 2.73%
Total yield or rate of return will be = 13.2 + 2.73 = 15.94 %
7 0
3 years ago
How are dividends and dividends payable reported in the financial statements prepared at december 31
Agata [3.3K]

Answer:

1. Dividends are deducted from the Statement of Retained Earnings as dividend expenses.

2. Dividends payable are reported in the Balance Sheet as current liabilities.

Explanation:

Dividends are distributions to the shareholders from earnings (income) after all expenses and taxes have been deducted from the revenue for the period.  Dividends payable are unpaid dividends, which are reported as current liabilities until they are paid for in the next accounting period.

4 0
3 years ago
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for
NikAS [45]

The joint cost allocated to product M1 using the net realizable value is $198,095.

<h3>What is the joint cost?</h3>

Joint costs refer to the common production costs (direct materials, direct labor, and overheads) incurred to produce two or more products during the same process.

Based on this, the different products have a common costs that should be allocated based on some criteria.

<h3>Data and Calculations:</h3>

                                                M1              M2              B1           Total

Units produced                  25,400       13,700       10,000       49,100

Allocated joint costs                ?                 ?                ?      $ 375,000

Sales value at split-off $ 402,000  $ 268,000  $ 91,000 $ 761,000

Joint cost of M1 using the net realizable value = $198,095 ($402,000/$761,000 x $375,000)

Thus, the joint cost allocated to product M1 using the net realizable value is $198,095.

Learn more about joint costs at brainly.com/question/25408525

#SPJ1

3 0
2 years ago
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