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Ray Of Light [21]
3 years ago
9

Fiat borrowed $80,000 on October 1, 2019. Fiat will not make any payments until October 1, 2021, and at that time, Fiat will pay

$84,000. Which of the following correctly states the annual financial statements as of December 31, 2020.a. A Interest payable of $2,500; interest expense of $2,500 b. Interest payable of $1,500; interest expense of $2,000 c. Interest payable of $4,000; interest expense of $2,500 d. Interest payable of $2,500; interest expense of $2,000
Business
1 answer:
natita [175]3 years ago
8 0

Answer:

The answer is d. Interest payable of $2,500; interest expense of $2,000

Explanation:

Interest component over 2 years = $84,000- $80,000 = $4000

interest expense for a year = 4000/2 = $2000

Interest payable = 1.25 years   * 2000 = $2500

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Secret Trails received payment in full within the credit period for horse boarding for $1,300 plus 4% sales tax. Terms of the sa
riadik2000 [5.3K]

The appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

<h3>Journal entry</h3>

Based on the information given the correct entry to record this transaction is:

Debit Cash $1313

{$1300+[($1300×4%)-($1300×3%)]}

[$1300+($52-$39)]

Debit Sales Discount $39

($1300×3%)

Credit Accounts Receivable $1352

[$1300 + ($1300×4%)]

Inconclusion the appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

Learn more about journal entry here:brainly.com/question/9701045

7 0
2 years ago
Allocative efficiency occurs when the a. minimum of average total cost equals average revenueb. minimum of average total cost eq
Usimov [2.4K]

Answer: Allocative efficiency occurs when the<u><em> marginal cost equals the marginal benefit to society</em></u>

Allocative efficiency is a state of the economy in which production stand for individual preferences, every commodity or work is produced up to the state where the last part renders a marginal benefit to individual equal to the marginal cost of producing.

<u><em>Therefore the correct option is (c)</em></u>

3 0
3 years ago
There are only three stocks in the economy. Stock A has 20 shares outstanding and a price per share of $10. Stock B has 15 share
gregori [183]

Answer:

Market value of stock A = 20 shares x $10 = $200

Market value of stock B = 15 shares x $3   = $45

Market value of stock C = 10 shares x $5   = $50

Total market value                                          $295

Amount to invest in stock A

= $200/$295 x $5,000

= $3,389.83

Explanation:

In this case, we will calculate the market value of each stock by multiplying the number of each stock by their corresponding market prices.

Thereafter, we will divide the market value of stock A by the total market value multiplied by amount available for investment ($5,000).

7 0
3 years ago
After a third complaint about how her company was handling customer service requests, catalina developed a code of ethics to spe
Arisa [49]

The code of ethics which Catalina developed is supposed to spell out how her staff will interact with customers, fellow employees, and members of the general public.

<h3>What is the purpose of a Code of Ethics?</h3>

The Code of ethics is an organizational blueprint that spells out the behavior of staff or employees which when followed to the letter ensures, that the image or the organization is associated with the highest levels of:

  • Professionalism
  • Integrity and
  • Honesty,

These help to increase brand equity.

Please see the link below for more about the Code of Ethics:

brainly.com/question/11634495

6 0
2 years ago
Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss
Greeley [361]

Answer:

Net Cash Flows from operating activities is $68.5 million.

Explanation:

The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.

The net cash flows from operating activities can be calculated using the following method:

                                                                 Millions

1. Net Income                                                65

<u>Add Non Cash Deductions</u>

2. Depreciation                                             5.5

3. Loss on sale of Equipment                       1.5

<u>Add / (Less) the increase or </u>

<u>decrease in current Assets or </u>

<u>liabilities</u>

4. Increase in Trade Receivables                (2.5)

5. Increase in Trade Payables                      3.5

6. Increase in inventory                               <u> (4.5) </u>

Net Cash Flows from operating activities $68.5

4 0
3 years ago
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