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musickatia [10]

3 years ago

5

Montana Furniture Mart sold $120,000 of furniture on June 30 and accepted the customer's $120,000 10% 1-year note payable in exc

hange. Montana Furniture Mart would record ___ for interest on December 31 assuming that 10% approximates the market rate of return

1 answer:

Sedaia [141]3 years ago

4 0

Answer:

Cash borrowed = $120,000

Interest on promissory note = 10%

Explanation:

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explain how (if at all) each of the following events affects the location of a country’s production possibilities curve: a. the

Alex787 [66]

The following are the analysis of a Production Possibility Curve. It is to be noted that As education quality improves, the production potential curve will shift outward, improving job skills and productivity. PPC will migrate abroad as human capital boosts the country's resources.

<h3>What happens when the number of unemployed increases?</h3>

It will not affect PPC's position, or it will remain the same, because the number of jobless employees will not change the overall labor force.

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Increased efficiency as a result of technological advancement will move PPC outward as it boosts productivity and allows for greater output with existing resources.

<h3>What will happen when a devastating earthquake destroys numerous production facilities?</h3>

The severe earthquake destroys available resources and capital stock, decreases productivity, and shifts PPC inward.

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6 0

2 years ago

On January 1 of this year, Thomas Insurance Corporation issued bonds with a face value of $ 4,000,000 and a coupon rate of 9 per

ra1l [238]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c Dr $2199415

To Bonds Payable a/c $2000000

To Premium on the issue of bonds $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

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7 0

2 years ago

June 1 Beginning inventory 20 units at $19 $ 380 June 7 Purchases 70 units at $20 1,400 June 22 Purchases 10 units at $23 230 $2

Vadim26 [7]

Answer:

Option (d) is correct.

Explanation:

Given that,

June 1 Beginning inventory 20 units at $19 = $ 380

June 7 Purchases 70 units at $20 = 1,400

June 22 Purchases 10 units at $23 = $230

Cost of goods available for sale = $2,010

On June 30, units on hand = 30 units

Cost of Ending inventory:

= (20 units × $20) + (10 units × $23)

= $400 + $230

= $630

Total cost of goods sold:

= Cost of goods available for sale - Cost of Ending inventory

= $2,010 - $630

= $1,380

6 0

3 years ago

Taking a cash advance on your credit card for daily living expenses may not be a wise financial decision because interest begins

Phoenix [80]

Answer:

The statement is true

Explanation:

Credit card is the card which provide the benefit to the people to purchase the items without cash. In short, it is that card which the person could use when the person is short of cash or does not have cash while purchasing the item.

The benefit which is provided, it is against the interest which is being charged from the day the amount is spent till the date the whole amount (which is principle amount plus the interest amount) is paid to the company.

So, taking the cash in advance from the credit card would not be a wise decision as the interest begin from the day the advance is taken.

6 0

3 years ago

On july 1, the cash account balance was $37,450. during july, cash payments totaled $115,860 and the july 31 balance was $29,600

timofeeve [1]

<span>108,010

Starting balance 37,450 Minus payments of 115,860 Leaves balance = $-78,410 (37,450-115860= -78,410) Therefore in order for the balance to go up to 29,600 the receipts must have been 108,010 because 29,600 --78410 = 108,010</span>

6 0

3 years ago

Read 2 more answers