QUESTION 4<br> Which of the following payment types require you to pay upfront?

On november 1, 2018, the bagel factory signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued inter

Salsk061 [2.6K]

Answer:

A) debit interest expense, $1000

Explanation:

to determine the accrued interest expense = $100,000 x 6% x 2/12 = $1,000

the journal entry should be:

December 31, 2018, accrued interest expense on note payable:

Dr Interest expense 1,000

Cr Accrued interest payable 1,000

Accrual accounting establishes that expenses must be recognize during the period that they occur regardless of when they are paid. So we must recognize 2 months worth of interest.

6 0

3 years ago

An anticipated purchase of equipment for $1,000,000, with a useful life of eight years and no residual value, is expected to yie

exis [7]

Answer:

3 years

The average rate of return method includes the entire amount of the income earned over the life of the proposal.

a. rate of return on investments

b. may be reconsidered if funds later become available.

Explanation:

Cash payback period measures how long it takes to recover the amount invested in a project from the cumulative cash flow.

Amount invested = $-1,000,000

Amount recovered in year 1 = $-1,000,000 + $400,000 = $-600,000

Amount recovered in year 2 = $-600,000 + 320,00 = $-280,000

Amount recovered in year 3 = $-280,000 + 280,000 = 0

The amount invested is recovered In the 3 year

Average accounting rate = average net income/ average book value

Net present value is the present value of after tax cash flows from an investment less the amount invested. The interest rate used is the rate of return on investments.

The hurdle rate is the least acceptable rate that a project can have for it to be acceptable.

I hope my answer helps you

8 0

3 years ago

One way in which you lose financially when buying a new car is

ivanzaharov [21]

A I’m not doing this but pretty sure A

7 0

3 years ago

International investors pulled their funds out of Asia and moved them into mostly the United States. Using the large open econom

Zinaida [17]

Answer:

Policy impact will be positive

Explanation:

When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:

1. Create more opportunity for development

2. Reduces the interest rate of lending in the society

3. Exchange rate value will decrease just because more of these funds will be used for business transactions

4. The prices of goods will be adjusted to balance the different caused by inflation

7 0

3 years ago

Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decid

WARRIOR [948]

Answer:The answer is $0 $0

Explanation:

The entry in the Balance sheet

Dr : capital Bill $25,000, page $110,000,Larry $100,000, Scot $65,000, Account payable $100,000 , Total Dr $400,000 Cr : Non cash asset $300,000, cash $ 100,000, Total Cr $400,000

The entry in the Realisation Account will be

Dr: sundry Asset $400,000, Cr : proceed from sale of asset $150,000, Balance c/d $250,000 , Share of the loss Bill 3/10 × 250,000 = $75,000, Page 2/10 × 250,000 = $50,000, Larry 1/10 × 250,000 = $25,000, Scot 4/10 × 250,000 = $100,000Total Dr : $400,000, Total Cr :$400,000

The entry in the capital Account of the partners will be

Bill Dr: share of loss $75,000, Total Dr:$75,000 Cr : Balance b/d $25,000,Balance c/d $50,000, Total Cr: $75,000

Page Dr: share of loss $50,000, Balance c/d $60,000, Total Dr:$110,000Cr: Balance b/d $110,000, Total Cr : $110,000

Larry Dr : share of loss $25,000, Balance c /d $75,000, Total Dr:$100,000, Cr : Balance b /d $100,000 Total Cr $100,000

Scot Dr: share of loss $100,000, Total Dr : $100,000Cr: Balance b /d $65,000, Balance c /d $35,000, Total Cr :$100,000

Note : if realisation of the asset result in a loss and a partners capital account is already or is thereby placed in debt, the partner must pay in enough cash to clear the balance. Otherwise, the remaining partners cannot be paid the sums shown to their credit. Since Page and Larry capital account both showed a debit balance, The amount to be distributed to page and Larry upon liquidation of the partnership is $0 $0

7 0

4 years ago

QUESTION 4 Which of the following payment types require you to pay upfront?