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cupoosta [38]
3 years ago
9

FinanceCo lent $8 million to Corbin Construction on January 1, 2021, to construct a playground. Corbin signed a three-year, 6% i

nstallment note to be paid in three equal payments at the end of each year.
Required:

1. Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2018.
2. Prepare an amortization schedule for the three-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2018.
4. Prepare the journal entry for the third installment payment on December 31, 2020.
Business
1 answer:
kondor19780726 [428]3 years ago
3 0

Answer:

Explanation:

note to be paid with three equal payments @ 6% interest at the end of each year.

Amortization Schedule

Year Opening      Interest 6%    3 equal Paments   Repay         Closing  

1       8000000         480000     2666667         3146667         5333333

2       5333333          320000     2666667         2986667 2666667

3      2666667           160000     2666667         2826667 0

Journal Entries

January 1, 2018

Loan Receivable        8000000

           Bank                       8000000

Amount given as Loan

December 31, 2018  

Cash                 3146667      

             Interest Income   480000

             Loan Receivable  2666667

To record the repayment and interest income

December 31, 2020

Cash                 2826667      

             Interest Income   160000

             Loan Receivable  2666667

To record the repayment and interest income

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Nikitich [7]

Answer:

I think that there will be change in the population consuming the good because the goods are sold according to population who consumes it.The goods are sold according to the people .If there will be a lot of population consuming the good then the business can grow rapidly . But if there will be less population then people cant sold much goods.

7 0
2 years ago
1. Which of the following is characteristic of governmental fund accounting and financial reporting? a. The inclusion of only fi
34kurt

Answer:

a) the inclusion of only financial assets and related liabilities.

Explanation:

The basic foundation of governmental financial accounting and reporting in the United States was established by the Governmental Accounting Standards Boards (GASB) in its "Objectives of Financial Reporting," which stated that the purpose of financial reporting is to provide information to facilitate decision making by various groups.

The groups were defined as;

(1) citizens of the governmental entity,

(2) direct representatives of the citizens, such as legislatures and oversight bodies, and

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3 0
3 years ago
The staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called
Juli2301 [7.4K]

The question is incomplete:

The staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called:

a. Ethnocentric staffing policy

b. Polycentric staffing policy

c. Geocentric staffing policy

d. None of the above

Answer:

Geocentric

Explanation:

-Ethnocentric staffing policy is when a business that has global operations seeks the people for key positions from the home country.

-Polycentric staffing policy is when a company seeks employees in the home country for positions in the headquarters and people from other places for the other offices abroad.

-Geocentric staffing policy is when a company seeks the best person for each position without considering the nationality or culture.

According to this, the answer is that the staffing policy that seeks the best people for key jobs throughout the organization, regardless of nationality, is called geocentric staffing policy because the company only focuses on the person that best fits the position without considering the nationality.

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4 0
3 years ago
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) T
inn [45]

Answer:

9.315%

Explanation:

The computation of WACC is shown below:-

But before that we need to do the following calculations

PV -$1,000

PMT 80

N 20

FV $1,000

Compute IY 8%

After tax cost of Debt = Before tax cost of debt × (1 - tax rate)

= 8% × (1 - 25%)

= 6%

According to the CAPM,

Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)

= 4.5% + (1.2 × 5.5%)

= 11.10%

Weight of Equity = 100% - 35%

= 65%

WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)

= (65% × 11.10) + (35% × 6)

= 9.315%

8 0
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