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nadya68 [22]
3 years ago
10

On January 1, 2017, Teal Furniture Co. borrowed $6,100,000 (face value) from Gary Sinise Co., a major customer, through a zero-i

nterest-bearing note due in 4 years. Because the note was zero-interest-bearing, Teal Furniture agreed to sell furniture to this customer at lower than market price. A 10% rate of interest is normally charged on this type of loan. Prepare the journal entry to record this transaction.
Business
1 answer:
Brilliant_brown [7]3 years ago
7 0

Answer:

Explanation:

Dr Cash $6100000  

Dr Discount on notes Payable $1933620  

     Cr Notes Payable  $6100000

     Cr Unearned Revenue  $1933620

Discount on Notes Payable :

n=4

FV =6100000

I = 10%

PV= $6100000 - ($6100000 * PVIF)

= $6100000 - ($6100000 * 0.68301) = $4166382

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Three sisters are interested in forming a business together. They have three initial concerns: How to maximize their benefits fr
blsea [12.9K]

Answer:

Limited liability company

Explanation:

A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.

It combines features of a corporation and a partnership or sole proprietorship.

This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.

Also the business will continue even if only one of the sisters remains.

So an LLC is the best option for them.

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3 years ago
If you had a bank account, which two methods of completing transactions do you think you would use most frequent?
Alika [10]
Withdraws and deposits
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Read 2 more answers
Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local bank. Instructions:
mrs_skeptik [129]

Answer:

A

  • M1 change = $500
  • M2 change = $0

B

  • M1 change = -$340
  • M2 change = -$180

Explanation:

A. M1 includes actual liquid cash in hand as well as cash in checking deposits.

M2 includes M1 as well as savings deposits and time deposits amongst others.

M1 change = +$500

$500 went from the Savings account which was not part of M1 to M1.

M2 change = $0

The money went from Savings to Checking which are both part of M2.

B.

M1 change = -$-180 - ( 500 - 180 -160 ) = -$340

Tax of $180 went out of the supply as tax. Jane deposits the remaining cash after paying $160 for goods into the savings account which is not part of M1. That remaining cash is = 500 - 180 - 160 = $160.

M2 change = -500 + 160 + 160 = -$180

For M2, only taxes will reduce money from it because the rest goes to checking deposits and savings accounts both of which are part of M2

4 0
3 years ago
AnaCarolina and Jaco work at Duke Manufacturing, and they are tasked with determining appropriate performance metrics for the in
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Answer:

b. operating throughput

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Based on the information provided within the question it can be said that the best metric would be operating throughput. This is because the balance scorecard needs to keep track of the execution of activities done by the employees, therefore using the data of operating throughput would allow Duke to accurately measure how well the employees are performing based on how much product they have created.

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3 years ago
explain two ways in which the government contributes to the efficient operation of the economic system.​
andreev551 [17]
Government enhances the operation of the market system by providing an appropriate legal foundation and promoting competition. Transfer payments, direct market intervention, and taxation are among the ways in which government can lessen income inequality.
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2 years ago
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