Answer:
Required 1
<u>January 1</u>
Cash $340,000 (debit)
Note Payable $340,000 (credit)
Required 2
$27,200 goes toward interest expense.
Explanation:
<u>Issuance of the Note :</u>
Assets of Cash are increasing, the Liabilities are also increasing.
<u>Payment at December 31 :</u>
The Annual Payment comprises of Capital Repayment and Interest Expense.
Prepare an amortization schedule using the details of the Note highlighted below to separate the Capital Repayment and Interest Expense Component :
PV = $340,000
PMT = - $85,155
N = 5
i = 8%
P/yr = 1
FV = $0
Note Schedule is attached !
Answer: The following journal entries would apply:
<u>Purchase of franchise:</u>
Debit: Restaurant franchise (intangible asset) $85,000
Credit: Cash $85,000
<u>Amortization of franchise:</u>
Debit: Amortization charge $708
Credit: Accumulated amortization $708
Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.
Answer:
4
Explanation:
Its every 4 mins we see ads
Answer:
$6,666,666.67
Explanation:
The computation of the level of sales operating at full capacity is as follows
= Sales ÷ Operating capacity percentage
where,
Sales is $6,000,000
And, the operating capacity percentage is 90%
Now placing these values to the above formula
So, the level of sales operating at full capacity is
= $6,000,000 ÷ 90%
= $6,666,666.67
Hence, the level of sales is $6,666,666.67
