Answer and Explanation:
The journal entries are shown below:
On Feb 15
Purchases $800,000
To Accounts payable $800,000
(Being the purchase of inventory on credit is recorded)
On Mar 31
Accounts payable $800000
To Notes payable $800000
(Being the issuance of note is recorded)
On Sept 30
Notes payable $800,000
Interest expense $40,000
To Cash $840,000
(Being the payment of note and interest is recorded)
The interest expense is computed below:
= $800,000 × 10% × 6 months ÷ 12 months
= $40,000
The six months is calculated from Mar 31 to Sep 30
Only these entries are passed
Answer:
False.
Explanation:
GANTT refers to a chart that was developed by Henry L. Gantt, who was an american engineer and a social scientist, and is thus named after him. This chart is used to describe and illustrate various scheduled activities and the duration that each activity might take to complete. There is no full form for this word "GANTT". Therefore, the statement is false.
Answer:
The marginal rate of technical substitution will remain constant.
Explanation:
The marginal rate of technical substitution is the rate at which an input is substituted for others. For instance, it is the rate at which the amount of labor should be decreased to increase the amount of capital.
It represents the slope of an isoquant. When the inputs are perfectly substitutable, the isoquant is a straight line. In this situation, the marginal rate of technical substitution remains the same at all the points of the isoquants. The MRTS remains constant, though further information is needed to find out if it is high or low.
Answer:
c.$209,160
Explanation:
Given that the cash received from each sale will be collected over 2 months. If 30% of mechanize is to be sold for cash, then 70% will be sold on account. Further more, 80% of the credit/sale on account will be collected in the month of sale and 20% in the following month.
Hence for October, cash collection will include 20% of credit sale from September and 80% of the credit sale in the month.
Given that sales in September is $250,000
Amount expected to sold on account
= $250,000 - (30% × $250,000)
= $175,000
Amount expected to be collected from this sale in October
= 20% × $175,000
= $35,000
Amount of credit sale in October
= $311,000 - (30% × $311,000)
= $217,700
Amount of this credit sale to be collected in October
= 80% × $217,700
= $174,160
Total collected from accounts receivable in October
= $174,160 + $35,000
= $209,160
