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pishuonlain [190]
2 years ago
5

A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events fo

r calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018.
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.
4. The CD matured on September 30, 2018.
Business
1 answer:
sergeinik [125]2 years ago
3 0

Answer:

Feb. 1     DR Cash                                                 $400,000

                  CR Tax anticipation notes                                     $400,000

Dec 31   DR Expenditures - Interest                       $3,666.67

                    CR Accrued Interest Payable                               $3,666.67                  

Working

February to December = 11 months

Interest = 400,000 * 1.0% * 11/12 months = $3,666.67

April 1      DR Investments                                          $100,000

                     CR Cash                                                                  $100,000

Sept. 30   DR Cash                                                    $50,200

                      CR Investments                                                        $50,000

                            Interest Income                                                        $200  

Working

Interest Income = 50,000 * 0.8% * 6/12 months

= $200

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Answer: Relationship Marketing

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Phat International is making use of dialogue with their customers to create more loyal customers which is a form of relationship marketing.

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3 years ago
At Ava's second birthday, her grandparents wanted to pool their money to buy U.S. Treasury bonds that would ultimately provide $
Lelu [443]

Answer:

They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

Explanation:

The initial amount to be invested in order to yield $120,000 after 16 years can be expressed as;

F.V=P.V(1+R)^n

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F.V=future value of investment

P.V=present value of investment

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n=number of years

In our case;

F.V=$120,000

P.V=unknown

R=4%=4/100=0.04

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replacing;

120,000=P.V(1+0.04)^(16)

120,000=P.V(1.04)^16

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They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

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Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as a.period costs
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Answer:

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.

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In a supermarket, a vendor's restocking the shelves every Monday morning is an example of fixed order interval.

The situation where an inventory item has independent demand and orders are placed on a constant time period basis is referred to be an FOI system, also known as a periodic review system.

A technique for inventory control is the Fixed Order Interval System. The inventory model also goes by the name fixed reorder cycle. By monitoring the product demand in this, a set interval is formed. It is employed to control the raw material supply. Many businesses utilize the fixed order quantity system because it reduces reorder errors, effectively manages storage space, and avoids wasteful blocking of funds that may be used elsewhere.

To know more about Fixed Order Interval refer to:  brainly.com/question/18882719

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