Answer:
-19.061%
Explanation:
interest earned= principal x time x interest rate
Interest earned = $264,500 - $204,000 = $-60,500
$-60,500 = $264,500 x 12 x interest rate
interest rate = -0.19061 = -19.061%
Answer:
(a) $17,900
(b) $800
Explanation:
Given that,
Current assets = $4,900
Net fixed assets = $27,300
Current liabilities = $4,100
Long-term debt = $10,200
(a) Total assets = Current assets + Net fixed assets
= $4,900 + $27,300
= $32,200
Total liabilities = Current liabilities + Long-term debt
= $4,100 + $10,200
= $14,300
value of the shareholders’ equity:
= Total assets - Total liabilities
= $32,200 - $14,300
= $17,900
(b) Net working capital:
= Current assets - Current liabilities
= $4,900 - $4,100
= $800
Answer:
The correct answer is: Net Income would be overstated and Balance Sheet liabilities would be understated.
Explanation:
The Income Statement is a report that measures a company's financial performance over a specific accounting period. The Income Statement is also known as the Profit & Loss Statement and Earnings Statement. The Income Statement reflects the company's <em>revenues and expenses</em> during a certain period.
Thus, <em>if deferred interest is not recorded in the Income Statement, the Expenses and Liabilities will be understated and the Net Income would be overstated</em>.
Answer:
The maturity value of the note is <u>$132,000</u>
Explanation:
A Loan note is a promissory note that is signed to make a promise of an amount of Loan taken by someone that to be returned after a specific time with interest value at a defined in the loan note.
The maturity value of the loan note can be calculated as follow
Face value = $120,000
Interest rate = 10%
Time period = 1 years
Use following formula to calculate the maturity value of the loan note.
Maturity value = Face value x ( 1 + interest rate )^ numbers of years
Placing values in the formula
Maturity value = $120,000 x ( 1 + 10% )^1
Maturity value = $132,000