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Art [367]
3 years ago
8

On June 1, Sawyer Co. borrowed $5,000 by extending their past-due account payable with a 45-day, 12% interest-bearing note. On J

uly 16, the due date, Sawyer pays the amount due in full. Sawyer would record this payment with a (debit/credit) _______ to Interest Expense in the amount of _______.
A. credit; $600

B. debit; $75

C. debit; $600

D. credit; $75
Business
2 answers:
Akimi4 [234]3 years ago
8 0

Answer:

The correct answer is Option B.

Explanation:

Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

The interest expense on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $5,000 x 12%/12 x 1.5 months = $75.

Therefor, total debit to interest expense is $75.

miv72 [106K]3 years ago
3 0

Answer:

The correct answer is D)

Explanation:

The amount borrowed is an expense to Sawyer Co. Therefore it has to be recorded as a credit transaction in their Interest Expense Account by the interest on the $5,000 that was borrowed.

The interest on the $5,000 is calculated by apply the rate (12%) on $5,000.

= 5000(12/100)

= 50*12

= $600

The actual amount is gotten by dividing the interest by 12 months and multiplying by a month and a half (45 days) assuming that a month is 30 days.

= (600/12)1.5

= $50 * 1.5

= $75

The principle of double-entry in accounting states that you must always credit any increase in liability and debit a decrease in an amount due to another.  

 

Cheers!

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The attitude adopted by Calvin Coolidge that government should play a small role in business affairs is known as what?
nydimaria [60]

Answer:

3) laissez-faire

Explanation:

Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.

President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.

3 0
3 years ago
A company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so fort
kobusy [5.1K]

Answer:

Vendor analysis

Explanation:

Organizational Buying Process

This is simply refered to as the decision making process where organizations state the need for purchased products and services and thereafter identify or evaluate to choose among them. There are 3 influences purchase type. They includes: structural and behavioral.

Vendor analysis in organizations buying influence is simply known as the behavioral needs of the buyer.

ethical conflicts may sometimes arise in buyer-supplier relationships. This can help the buying organization to manage spending

Vendor Analysis

This is simply refered to as a formal rating of suppliers on all important areas of performance.

The usual goal of a vendor analysis is to lower the total costs of a purchase.

The steps in Organizational buying process. They includes:

1. Recognize the product needed

2. Vendor analysis

3. Purchase decision

4. Post purchase evaluation.

3 0
3 years ago
Participation occurs when employees have a voice in decisions about their own work.
jarptica [38.1K]
TRUE. Participation occurs when employees have a voice in decisions about their own work.
3 0
3 years ago
Suppose that the government of Ping's hears of the working conditions and the country seizes the Quality Dragon plant in which P
KATRIN_1 [288]

Answer:

The answer is: A) expropriation

Explanation:

Expropriation is the seizure of private property by a government entity or government agency for the purpose of public interest. Usually owners that lose property due to expropriations, receive some type of compensation for their loss. It also can refer to private property being taken away by another private entity with the authorization of a government entity or agency. A common example of expropriation is land being taken away for building roads or dams.

In this case the Quality Dragon plant was expropriated by a private entity who was authorized by the government and the owner was received a monetary compensation for his loss.

5 0
3 years ago
Last year, Forest Products issued both 5-year and 10-year bonds at par. The bonds each have a coupon rate of 5.5 percent, paid s
Anna007 [38]

Answer:

Price at issuance is $1,000 for both bonds.

Price of the 5 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77

PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47

Market price = $935.24

this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%

Price of the 10 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97

PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78

Market price = $876.75

this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%

5 0
3 years ago
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