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ASHA 777 [7]
4 years ago
10

On September 1, Sky Mountain Co. borrowed $200,000 on a 6%, 9-month note payable to Coast National Bank. Given no previous adjus

ting entries have been recorded, Sky Mountain's adjusting entry four months later at December 31 would include a:
Business
1 answer:
avanturin [10]4 years ago
7 0

Answer:

Accrued Interest - $5,333.33

Explanation:

At the end of the year, due to the matching principle, expenses of the same period need to be matched with that period and 'expensed' in the same year.

In the scenario above there has been 4 months out of 9 used in the current year, hence as at December 31st. 4 months interest will be included in the current year and 5 months interest will be attributable to the following future.

4 months / 9 months * 6% * 200,000 = $5333.33

In consonance with the <em>accrual basis of accounting</em>, the amount of accrued interest that will be recorded with adjusting entries will be:

Dr Interest expense - 5,333.33

Cr    Accrued Interest -   5,333.33

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Jim had a car accident in 2019 in which his car was completely destroyed. At the time of the accident, the car had an adjusted b
arlik [135]

Answer:

the deductible loss on the car is $12,000

Explanation:

The computation of the Jim deductible loss on the car is shown below:

Given that

Car value = $40,000

Insurance recovery = 70%

Now the deductible loss is

= Car value - (car value × insurance recovery)

= $40,000 - ($40,000 × 70%)

= $40,000 - $28,000

= $12,000

hence, the deductible loss on the car is $12,000

5 0
3 years ago
Suppose a relatively poor country receives foreign aid to be used for education.​ However, a large portion of the money is stole
makkiz [27]

Answer:

True

Explanation:

There are two reason which suggest that action will generate greater inequality.

1. some amount is stolen by government official thus fund is getting allocated to person who are already self-sufficient hence causing inequality

2. even left portion of fund is not allocated proportionally to all the area and thereby increasing the inequality.

6 0
4 years ago
How do (inter) governmental organisations, such as the International Energy Agency, project energy use and carbon emissions for
Ainat [17]

The International Energy Agency provides insights into energy use and carbon emissions for the future in the form of exploring different scenarios, which are not actual projections.

<h3 /><h3>What are the goals of the IEA?</h3>

The agency aims to disseminate information and support global efforts to transition from clean and renewable energy use, in order to reduce the impacts of non-renewable energy on the environment and climate.

Therefore, the IEA uses an approach to identify future trends on the sustainable energy transition, and is not really a tool for forecasting the future of global energy.

Find out more about renewable energy here:

brainly.com/question/2333811

#SPJ1

5 0
2 years ago
Why does the free-market system require government regulation? Companies can't be efficient or innovative on their own. Foreign
melomori [17]

Answer:

The correct answer are the option B and C: Foreign competition would wipe out domestic production and producers are driven by the profit motive to work against competition.

Explanation:

First of all, the huge companies, and that includes the foreign competition, will always wipe out the small ones and that situation will definitely impact in the domestic economy of a country by leaving without work to the other enterprises and their employees, also by increasing prices and obligating to the customers to buy them due to their power in the industry and more. That is why, government regulation is obviously needed in the free-market system because if there is not, then the leader organization will do as they please with the market.

Secondly, the companies are lucrative organization and therefore that the most important thing that they care about is to make money by producing goods or giving services to the community that need it. That is why, if there is not government then the most powerful companies would try to eliminate the small ones by taking all their consumers away.

8 0
3 years ago
Calculate the IRR of a machine that is purchased for $5,500, sold at the end of year 4 for $2,500, and produces the following ca
prohojiy [21]

Answer:

2.21%

Explanation:

The internal rate of return is the rate of return on the project where the present value of future cash flows equals the initial investment outlay. It is known as the break-even discount rate since, at IRR, the net present value is zero.

The IRR can be determined using the excel IRR function as shown thus:

=IRR(values)

values are the cash flows from years 0-4

Find attached excel file for IRR computation

Download xlsx
5 0
3 years ago
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