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xenn [34]
3 years ago
5

Lewis Company had the following transactions involving notes payable.

Business
1 answer:
Fiesta28 [93]3 years ago
8 0

Answer and Explanation:

The journal entries are shown below

1. Cash Dr $50,500

        To Note payable $50,500

(Being the amount borrowed is recorded)                    

2. Cash Dr $61,200

        To Note payable $61,200

(Being the amount borrowed is recorded)          

3. Interest expense $2,020

         To Interest payable $2,020

(Being the interest expense is recorded)

The computation is shown below:

= $50,500 × 8% × 6 months ÷ 12 months

= $2,020        

4. Interest expense $612

         To Interest payable $612

(Being the interest expense is recorded)

The computation is shown below:

= $61,200 × 6% × 2 months ÷ 12 months

= $612    

5. Note payable $61,200

    Interest expense $306

   Interest payable $612

          To Cash $62,118       ($61,200 + $918)

(Being the principal and the interest is recorded)

= $61,200 × 6% × 3 months ÷ 12 months

= $2,020

5. Note payable $50,500

    Interest expense $1,010

   Interest payable $2,020

          To Cash $62,118       ($50,500 + $3,030)

(Being the principal and the interest is recorded)

= $50,500 × 8% × 9 months ÷ 12 months

= $3,030

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Answer:

Limited liability partnership (LLP) / limited liability company (LLC)

Explanation:

Limited liability partnership and limited liability companies work very similarly and their main characteristics are:

  1. they are separate legal entities, this means that their owners are separate from them.
  2. since they are separate legal entities, the owners have limited liability
  3. they are not taxed directly, they act as pass through entities and their owner's pay income taxes
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5 0
3 years ago
Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA:a. Must ha
ipn [44]

Answer:

a. Must have a good faith belief that the tax return position will be accepted by the IRS.

Explanation:

Certified Public Accountant (CPA) is a term used to refer to the state title of approved accountants in the Uniform Certified Public Accountant Examination. The CPA allows these professionals to issue opinion statements in financial reports, following a few rules. For example, the Tax Services Standards Statement No. 1 states that a basic principle of the provision of tax services that the CPA has is to have a good faith belief that the tax return position will be accepted by the IRS.

3 0
3 years ago
Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?
arlik [135]
The reason why the demand is extremely time-and-place dependent would be: <span>Because customers must be present for service to be delivered
</span>customers must be present for services businesses because Unlike merchandising business, service business focused on the enhance Customer's experience rather than focus on selling the product.
8 0
3 years ago
During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a lower amount of net income
gladu [14]

Answer:

b. False

Explanation:

LIFO stand for Last in First Out. This means LIFO inventory valuation is based on earlier goods purchased.

So, when costs are decreasing, they are affecting latter prices and this usually affect FIFO (First in First Out) not LIFO.

7 0
3 years ago
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
jekas [21]

Answer: Number of months = 66.87 months

Explanation:

Given that,

Monthly Payment = $500

Interest rate(r) = 1.95% per month

Current Balance = $18,500

Number of months(t) = ?

Current\ balance = Monthly\ payment\times(\frac{1-present\ value\ factor}{r})

Current\ balance = Monthly\ payment\times(\frac{1-\frac{1}{(1+r)^{t}} }{r})

18,500 = 500\times(\frac{1-\frac{1}{(1+0.0195)^{t}} }{0.0195})

\frac{18,500}{500}\times0.0195=1-\frac{1}{1.0195^{t} }

\frac{1}{1.0195^{t}}=1-0.7215

1.0195^{t}=\frac{1}{0.2785}

1.0195^{t}=3.5906

Taking log on both side

t log(1.0195) = log(3.5906)

t = \frac{0.5551}{0.0083}

t = 66.87 months

6 0
3 years ago
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