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Oksi-84 [34.3K]
2 years ago
12

On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid

on February 28, 2022. Record the adjusting entry for interest at its year-end of December 31.
Business
1 answer:
almond37 [142]2 years ago
5 0

Answer:

Debit interest receivable $1,500

Credit interest revenue $1,500

Explanation:

Adjust entries are used in accounting to record accrued revenue or expense at the end of an accounting period.

On March 1, 2021, Bearcat lends an employee $20,000. The employee signs a note requiring principal and interest at 9% to be paid on February 28, 2022.

We are to calculate the adjustment at December 31, 2021.

We need to calculate interest accrued at year end. The loan would have stayed for 10 months.

Interest= principal* rate* time

Interest= 20,000* 0.09* (10/12)

Interest = $1,500

So we will debit interest receivable for $1,500 and credit interest revenue.

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Roma and Swain are partners in Roma & Swain Attorneys, LLP, a limited liability partnership. Roma supervises their firm's as
meriva

Answer:

b. Roma and Taylor

Explanation:

In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .

Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.

The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.

4 0
3 years ago
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When re
aleksandrvk [35]

Answer:

$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.

Explanation:

If we assume that Maxie's Game World uses a perpetual inventory system, the appropriate journal entries should be:

Date XXX, merchandise sold on credit to client YYY, terms 1/10, n/30

Dr Accounts receivable 2,600

    Cr Sales revenue 2,600

Dr Cost of goods sold 1,700

    Cr Merchandise inventory 1,700

7 0
3 years ago
Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2:_________.
klemol [59]

Answer:

Ansara Company

a. Ansara Company  Variable Costing Income Statement

For the Year Ended December 31, 20Y2 (in millions)

Sales                                                                         $ 21,920

Variable cost of goods sold:

Beginning inventory                             $ 1,841

Variable cost of goods manufactured 13,810

Ending inventory                                    2,149

Total variable cost of goods sold                               17,800

Manufacturing margin                                               $4,120

Variable selling and administrative expenses              870

Contribution margin                                                 $3,250

Fixed costs:

Fixed manufacturing costs                      $ 4,820

Fixed selling and administrative expenses 1,100

Total fixed costs                                                        5,920

Income from operations                                         $2,670

b. Explanation of the difference between the amount of income from operations reported under absorption costing and variable costing concepts:

The difference occurs as a result of cost of inventory at the beginning and at the end.  Under variable costing concept, the fixed manufacturing costs does not form part of the product costs.  They are treated as period costs.  But under absorption costing, fixed manufacturing costs form part of the product costs.

Explanation:

a) Data:

Ansara Company Abbreviated Income Statement for the year ended December 31, 20Y2: (in millions):

Sales                                       $21,920

Cost of goods sold                $18,630

Gross profit                             $3,290

Selling, administrative, and

other expenses                        1,970

Income from operations        $1,320

b) Absorption costing concept is a costing technique that includes the full cost of manufacturing (i.e. cost of direct materials, direct labor, and all fixed production costs or overheads) in the product costs.  Under variable costing concept, the full cost of manufacturing is not included in the product costs.  Instead, all the variable costs (direct materials, direct labor, and variable overhead, whether factory or not)  are included, while fixed manufacturing overheads are treated as period costs and expensed.

5 0
3 years ago
Help me Please D,B!!!!
Lunna [17]
It is c ..........................................................................................................................................................................
5 0
3 years ago
An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, for the next four years, respectively. The
RoseWind [281]

Answer:

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

Explanation:

a. Payback period in case of cash outflow = $5,700

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year         Cash Flow         PV Factor           PV of Cash Flow       Cumulative

                                                                                                            Cash Flow

0                 -  $5,700            1                             - $5,700                    -5,700

1                     $4,400         0.877                         $3,858.8                -$1,841.2

2                    $3,900         0.770                         $3,003                    $1,161.8

Since the cumulative cash flows are positive in 2nd year payback period =

1 + \frac{1,841.2}{3,003} \times 12 = 1 year and 7.36 months

b. Payback period in case of cash outflow = $7,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year         Cash Flow         PV Factor           PV of Cash Flow       Cumulative

                                                                                                            Cash Flow

0                 -  $7,800            1                             - $7,800                    -7,800

1                     $4,400         0.877                         $3,858.8                -$3,941.2

2                    $3,900         0.770                         $3,003                    -$938.2

3                    $5,100          0.675                         $3,442.5                  $2,504.3

Since the cumulative cash flows are positive in 3rd year payback period =

2 + \frac{938.2}{3,442.5} \times 12 = 2 years and 3.27 months

b. Payback period in case of cash outflow = $10,800

For calculating the pay back period we shall firstly discount the cash flows to present value @14 %.

Year         Cash Flow         PV Factor           PV of Cash Flow       Cumulative

                                                                                                            Cash Flow

0               -  $10,800            1                          - $10,800                   -$10,800

1                   $4,400         0.877                         $3,858.8                 -$6,941.2

2                  $3,900         0.770                         $3,003                    -$3,938.2

3                  $5,100          0.675                         $3,442.5                   -$495.7

4                  $4,300          0.592                        $2,545.6                   $2,049.9

Since the cumulative cash flows are positive in 4th year payback period =

3 + \frac{495.7}{2,049.9} \times 12 = 3 years and 2.9 months

Final Answer

Discounted payback period shall be as follows:

a. 1 year 7.36 months

b. 2 years 3.27 months

c. 3 years 2.9 months

7 0
3 years ago
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