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amid [387]
3 years ago
5

Blossom Company lends Blue Spruce industries $61200 on August 1, 2022, accepting a 9-month, 12% interest note. If Blossom Compan

y accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date
Business
1 answer:
Svetlanka [38]3 years ago
8 0

Answer:

Dr interest expense   $2448

Dr interest payable    $3060

Dr Notes payable      $61,200

Cr cash($2448 +$3060 +$61,200)                 $ 66,708.00  

Explanation:

The interest accrued at 31st December 2022 is interest for 5 months which is calculated thus:

interest as at 31st December=5/12*12%*61,200=$3060

On that interest expense would have been debited while interest payable is credited with $3060

On the due date, interest for another months need to computed as follows:

interest for four months=4/12*12%*61,200=$2448

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On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey bo
svet-max [94.6K]

Answer:

$1,800,000

Explanation:

Given short term notes payable = $3,000,000

Total amount used to liquidate short term notes = $2,200,000

Balance = $3,000,000 - $2,200,000 = $800,000

The additional $1,200,000 which is borrowed from Country Bank will not increase the short term notes payable because it's a long term credit

The additional $1,000,000 cash used will now be added to the balance amount

Amount to be reported as current liabilities = $1,000,000 + $800,000

= $1,800,000

Therefore the amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is $1,800,000

3 0
3 years ago
Service companies and notminusforminusprofit organizations​ ________. A. can use CVP by focusing on measuring the​ organization'
frutty [35]

Answer:

A. can use CVP by focusing on measuring the​ organization's output

Explanation:

Service companies and not-for-profit organizations​ can use CVP by focusing on measuring the​ organization's output.

Cost Volume Profit Analysis bothers on the profitability of company's output, whether it be a product manufacturing company or a service-rendering company.

In the case of a service company, Cost Volume Profit will be computed as: Profit = Service Price - Cost to provide service.

4 0
2 years ago
Read 2 more answers
Cost of Goods Sold account is debited and Finished Goods Inventory is credited for A) purchase of goods on account. B) the sale
Firlakuza [10]

Answer:

B) the sale of goods to a customer.

Explanation:

When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.

For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:

Account                                    Debit           Credit

Cash                                         $1,200

Sales Revenue                                             $1,200

Cost of Goods Sold                $1,000

Finished Goods Inventory                           $1,000

7 0
2 years ago
Manufacturing overhead data for the production of Product H by Shakira Company are as follows.Overhead incurred for 45,100 actua
Fittoniya [83]

Answer:

Total overhead cost variance                                      $

Standard fixed overhead cost ($9 x 45,100 hrs)    405,900

Less: Actual fixed overhead cost                             <u>411,000 </u>

Total overhead cost variance                                   <u> 5,100 (A)</u>

Explanation:

Total overhead variance is the difference between standard fixed overhead cost and actual fixed overhead cost. Standard fixed overhead cost is overhead rate multiplied by actual direct labour hours. Overhead rate is the total of variable overhead and fixed overhead rate ($8 + $1 = $9).

8 0
3 years ago
Using the method of your choice, calculate the Net Present Value of the following cash flows. Assume that the required return on
mezya [45]

Answer:

E. $78

Explanation:

The computation of the net present value is shown below:

Net present value is

= Initial investment + year cash inflows ÷  (1 + discount rate)^number of years + year cash inflows ÷  (1 + discount rate)^number of years

= -$150 + $175 ÷ 1.15 + $100 ÷ 1.15^2

= $77.78

= $78

Hence, the correct option is E. $78

8 0
3 years ago
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