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morpeh [17]
3 years ago
15

On April 1, 2020, Vaughn Company assigns $524,600 of its accounts receivable to the Third National Bank as collateral for a $336

,000 loan due July 1, 2020. The assignment agreement calls for Vaughn to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Prepare the April 1, 2020, journal entry for Vaughn Company.
Business
1 answer:
Stells [14]3 years ago
5 0

Answer and Explanation:

The journal entry is shown below:

On April 1, 2020

Cash $315,016

Finance charge ($524,600 × 4%) $20,984  

            To Notes payable  $336,000

(Being the cash and finance charge is recorded)

Fo recording this we debited the cash and finance charge as it increased the assets and expenses and credited the note payable as it also increased the liabilities

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3 years ago
Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-st
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Answer:

1. For the Year Ended December 31,2014

2. Revenues

3. Sales Revenue $96,639

4. Rent Revenue $17,230

5. Total Revenues $113869

(Sales Revenue $96,639 + Rent Revenue $17,369)

6. Expenses

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9. Administrative Expenses $9,138

10. Interest Expense $1,860

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13. Income Tax Expense $9,070

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15. Earnings Per Share $0.38

Earnings per share = ($15,664 ÷ 40,550) = $0.38

Explanation:

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2014 info related to P. Bride Company. ($000 omitted).

From the information given, we can arranged the values as follows into a balance sheet

1. For the Year Ended December 31,2014

2. Revenues

3. Sales Revenue $96,639

4. Rent Revenue $17,230

5. Total Revenues $113869

(Sales Revenue $96,639 + Rent Revenue $17,369)

6. Expenses

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8. Selling Expenses $17,567

9. Administrative Expenses $9,138

10. Interest Expense $1,860

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(Cost of Goods Sold $60,570 + Selling Expenses $17,567 + Administrative Expenses $9,138 +Interest Expense $1,860)

12. Income Before Income Tax $24,734

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(Income Before Income Tax  $24,734 - Income Tax Expense $9,070)

15. Earnings Per Share $0.38

Earnings per share = ($15,664 ÷ 40,550) = $0.38

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<h3>What is present value?</h3>

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Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

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