Answer:
$2,250
Explanation:
Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.
The would be paid in Year 2 can therefore be calculated as follows:
Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000
Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000
Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.
Therefore, you would be paying $2,250 interest in Year 2.
Answer:
$61,000
Explanation:
The computation of June payments for purchases budgeted is shown below:-
June payments for purchases budgeted = Purchase of June × Purchase percentage + May purchase × Percentage of the following month
= $75,000 × 25% + $65,000 × 65%
= $18,750 + $42,250
= $61,000
Therefore for computing the June payments for purchases budgeted we simply applied the above formula.
Internal controls shield your business from fraud, theft, and mistakes. Effective internal controls preserve your assets, cut down on loss, and maintain the accuracy of your financial reporting, among other traits.
Internal control is a procedure implemented by a company's management, board of directors, and other staff members and is intended to give reasonable assurance that the information is accurate, timely, and reliable. of adherence to relevant laws, rules, agreements, policies, and procedures.
Internal control is a procedure for ensuring that an organization's objectives in operational effectiveness and efficiency, accurate financial reporting, and compliance with laws, rules, and policies are met, according to the definitions of accounting and auditing.
Learn more about Internal control here
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Answer:
Total Stockholder's Equity is $26,276,000.
Explanation:
Stockholders’ equity section of the balance sheet
Common Stock @ $1 $1,800,000
Additional Paid-in Capital, $1,6200,000
Retained Earnings, $9200,000
Less: Treasury Stock <u>$924,000</u>
Total Shareholders Equity $26,276,000
As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.
Answer:
$434,000
Explanation:
The total amount that should be included in the operating income as follows:
1. Cash sales $135,000
2. Credit sales $289,000
3. Gain from the sale of property and the equipment $10,000
Operating income $434,000
hence, the $434,000 should be included in the operating income
