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finlep [7]
3 years ago
15

Determine current portion of long term note payable On January 1, Irving company purchased equipment of 280,000 with a long term

note payable. The debt is payable in annual installments of 56,000 due in December 31 of each year. At the date of purchase, how will Irving company report the note payable?
Business
1 answer:
user100 [1]3 years ago
5 0

Answer:

The current portion of any long term liability is the amount which is due in the current year of the balance sheet. So in this case the current portion of the long term note payable is $56,000 as it is the amount which is due within the current balance sheet year.

                                                   Debit                                         Credit

Equipment                                   280,000

Long term Note payable                                                                 280,000

Long term Note payable               56,000

Current portion of long term note                                                     56,000

First we will debit equipment because an asset is increasing and credit long term note payable because a liability is increasing.

Then we will debit long term note payable as a portion of the long term note is a current liability, and we will thus credit current portion of a long term note.

   

Explanation:

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7 0
3 years ago
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Dividing a diverse market into groups of customers who share similar traits or characteristics is the process known as:
victus00 [196]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

5 0
3 years ago
You are scheduled to receive annual payments of $11,100 for each of the next 24 years. Your discount rate is 10 percent. What is
Lisa [10]

Answer:

The difference in the present value is $988.32.

Explanation:

The difference in the present value can be calculated using the following 3 steps:

Step 1: Calculation of the present value if you receive these payments at the beginning of each year

This can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVA = Present value if you receive these payments at the beginning of each year = ?

P = Annual payments = $11,100

r = interest rate = 10%, or 0.10

n = number of years = 24

Substitute the values into equation (1), we have:

PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)

PVA = $10,871.54

Step 2: Calculation of the present value if you receive these payments at the end of each year

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where:

PVO = Present value if you receive these payments at the end of each year = ?

Other values are as defined in Step 1 above.

Substitute the values into equation (2), we have:

PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)

PVO = $9,883.22

Step 3: Calculation of the difference in the present value

This can be calculated as follows:

Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32

3 0
3 years ago
Candice bought a shipment of jeans to sell at her store for $20 each. She'd
rusak2 [61]

Answer:

D. $28

Explanation:

Given the following data;

Cost price = $20

Markup = 40%

To find the selling price;

Markup price = 40/100 * 20

Markup price = 800/100

Markup price = $8

Next, we would add the markup to the cost price;

Selling price = markup price + cost price

Selling price = 8 + 20

Selling price = $28

Therefore, the price of each pair of jeans is $28.

6 0
3 years ago
The process of evaluating and planning for long-term investments is called budgeting.
vekshin1
Answer is Capital Budgeting
Reason
Evaluating and planning for long term investments and risk of future cash flows is capital budgeting.
6 0
1 year ago
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