All business strategies seek to gain competitive advantage. a. True b. False

Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,

kolezko [41]

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

Cr Cash 10,000

Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date Cash flow Discount Balance

January 2, 2021 -$10,000 $10,515.42

January 2, 2022 $1,000 $171.81 $10,343.61

January 2, 2023 $1,000 $171.81 $10,171.80

January 2, 2024 $11,000 $171.80 $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

Cr Interest revenue 1,171.81

7 0

2 years ago

When the Sales Tax feature is enabled in QuickBooks Online, where must you record sales tax payments?

scoray [572]

Answer:

Sales Tax Center

Explanation:

QuickBooks Online is an online service for accounting software package that is developed as well as marketed by Intuit. Its products are mainly small or medium sized business and other accounting applications and cloud based version which accept management and payment of bills, business payments, payroll functions, etc.

In QuickBooks, we use the Pay sales tax window to create the sales tax payments. Intuit offers a new and advance version of sales tax feature in QuickBooks Online. We must record the sales tax payments in the sales tax center when the sales tax feature is enable in QuickBooks Online.

7 0

3 years ago

Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budget

Amanda [17]

Answer:

False.

Explanation:

Given: Total budgeted factory overhead cost = $600000.

Plantwide allocation base= 100000 hours.

Now, finding plantwide factory overhead rate.

Formula; Plantwide factory overhead rate= $\frac{total\ budgeted\ factory\ overhead\ costs }{plantwide\ allocation\ base.}$

⇒ Plantwide factory overhead rate= $\frac{600000}{100000} = \$ 6 per\ hours$

Hence, Zorn´s plantwide factory overhead rate is $6 per hour not $3 per hour.

8 0

3 years ago

What is the purpose of the pre-accident plan?

Natalija [7]

Having an established plan reduces the confusion that sometimes occurs with an accident. ... As part of the pre-accident planning, assign specific roles or duties to key personnel. These employees control specific aspects of the accident response to keep a handle on the situation. In short form, it is to establish procedures which result in preventing accidents.

7 0

3 years ago

On January 1, 2020, Swifty Corporation granted an employee an option to purchase 15000 shares of Swifty's $5 par value common st

nalin [4]

Answer:

For 2021, should recognize compensation expense under the fair value method of $170,500

Explanation:

According to the given data we have the following:

option pricing model determines total compensation expense to be $341,000

Also, The option became exercisable on December 31, 2021, after the employee completed two years of service.

Therefore, in order to calculate the amount should recognize compensation expense we would have to make the following calculation:

amount should recognize compensation expense=$341,000/2

amount should recognize compensation expense=$170,500

For 2021, should recognize compensation expense under the fair value method of $170,500

6 0

3 years ago