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Gnesinka [82]
3 years ago
14

Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $500,000 of inventory. Th

e face value of the note was $507,800. Greeson used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2020 will include a_____________.
Business
1 answer:
SpyIntel [72]3 years ago
6 0

Answer:

Debit to Interest Expense for $5,200

Explanation:

To calculate the adjusting entry for December 31,2020, the following steps will be taken

Step 1: Determine the amount of Discount to be amortized equally over 3 Months

The Bearing note was purchased for $500,000

The face value of the note was $507,800

The discount = $507,800 - $500,000 = $7,800

Step 2: Determine the amount to be included for entry December 31, 2020

Since, it was signed as a three-month interest bearing note, then by December 31st, two months would have gone by; November 1-30th and December 1-31st.

Hence, the adjusting entry will be made for 2 months, November and December as follows:

2/3 (2 out of the 2 months)/ $7,800 (Discount amount)

= 2/3 x $7,800

=$5,200

The adjusting entry will be as follows by December 31st

Debit Interest expenses by $52,00

Credit Discount on notes payable by $5,200

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The question is incomplete, Below is the complete question.

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Brody immediately recognized that this was different from the typical attacks he'd seen in his time with the company and decided to call his boss, Nick Shula. It was 3:30 AM when he made the call.

"Hello?" said Shula, groggy with sleep.

"Boss, it's Brody," Brody said. "Sorry to be calling like this, but i think we've got a problemm. The NIDS is showing that Web servers in multiple branch offices are under attack, and the traffic is coming from inside our network. What do you want me to do?"

Shula, suddenly awake, thought back to the proposal that was sitting on his desk, concerning the creation of an incident response team for the company. Shula had een so busy with other things that he hadn't been able to consider the proposal at all. Mentally kicking himself, he muttered into the phone, "Why didn't I look at that proposal?"

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"Never mind," Shula said. He had to think quickly in order to guide Brody through the situation. "Call the firewall guy on duty," he said, "and have him put in a temporary rule on the DMZ firewall to block all inbound traffic to the Web servers from internal IP addresses." After all, it was the middle of the night, and very few, if any, employees would be doing any work that involved the Web servers. Shula figured he would jsut get up a little early and have the rule removed before normal working hours; hopefully, by then the attack would have stopped.

"OK boss, will do. Get back to sleep, now," Brody said.

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Shula sighed as he realized it was going to be a long night...

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A) From what you know of the company so far, what will be among the various constituencies that the CSIRT will serve?

B) Will the company need to hire more employees to meet the needs of the CSIRT, or would you suggest it outsource some of that effort?

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It will actually help employees report,discuss and disseminate information as it regards computer security related information across the entire organization and it's various verticals.

CSIRT will actually help in timely response that is 24/7 and a coordinated effort in the handling of incident.

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B) For CSIRT to be efficiently constructed,the organization should also outsource the work initially in majority.

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Also,the company should have at least a part of the work outsourced to have access continuously to the respective systems at all times. This will be required mainly because information security is a fast moving technology and the company as well as it's employees need to be updated regularly and also informed of external threats.

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