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Flura [38]
3 years ago
10

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $79,000 to an employee of the company and r

eceived back a one-year, 10 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
OLEGan [10]3 years ago
8 0

Answer:

a.

1 July 2017  Notes receivable      $79000 Dr

                           Cash                           $79000 Cr

b.

31 Dec 2017  Interest receivable   $3950 Dr

                           Interest revenue        $3950 Cr

c.

30 June 2018  Interest receivable     $3950 Dr

                              Interest Revenue       $3950 Cr

1 July 2018       Cash                             $7900 Dr

                             Interest receivable       $7900 Cr

d.

1 July 2018   Cash                                   $79000 Dr

                             Notes receivable             $79000 Cr

Explanation:

a.

The receipt of note against issuing loan will cause a credit to cash against notes receivable.

b.

The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.

The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950

c.

First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950

Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.

d.

The cash will be debited and notes receivable account will be closed by crediting it.

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GarryVolchara [31]

Answer:

     News online is often fake or false, so you must take additional steps to ensure what you're reading is true. First, you should check the url. if it is a .gov or .edu, it it usually a reliable source. .com websites mean it is a commercial website, one that is just trying to earn money or fame. .edu means educational, and .gov means government, both of which are almost always truthful. That's one of the steps you can take to confirm what you're reading isn't a lie.

     You can also check other reliable sorces to see if they say the same thing. If you read an article off a website, Wikipedia being a good example of this, they usually have the sources they used to write said article. Wikipedia always has a list of these at the bottom of their pages. You can check those sources to see if they are reliable, and if they are that increases the validity of the article you read.

8 0
2 years ago
Starbucks wants to use the subjective approach to evaluate a new project. They are considering expanding their stores and rentin
ollegr [7]

Answer:

D) 18%

Explanation:

Starbucks wants to use the subjective approach to evaluate a new project. They are considering expanding their stores and renting office space to small business owners. They will have a separate reception area and online scheduling for those that want to use the office space. Starbucks has a WACC of 12%.

The objective is to use a subjective approach to evaluate the new project

The given  table can be well presented as follows:

Category                 Examples                                Adjustment Factor

High risk                  New products                            6%

Moderate risk    Cost savings, Expansion                 0

                            of existing products

Low risk                 Replacement of existing             -4%

                                equipment

Mandatory             Safety  equipment                      n/a

From the table, we can deduce that :

the WACC for this new project = Current WACC + Adjustment Factor (High Risk)

the WACC for this new project = ( 12% + 6%)

the WACC for this new project = 18%

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3 years ago
Benitez Company makes wicker and wooden slat picnic baskets. It requires approximately 1 hour of labor to make one basket of eit
kifflom [539]

Answer:

Assigned cost= $16,080

Explanation:

Giving the following information:

Wicker baskets are produced in batches of 100 units.

Wooden slat baskets are produced in batches of 50.

Setup is required for each batch. During the most recent accounting period, the company made 8,000 wicker baskets and 2,000 wooden slat baskets. Setup costs amounted to $24,000 for the baskets produced during the period.

First, we need to determine the number of batches.

Wicker= 8000/100= 80 batches

Wooden= 2000/50= 40 batches

Proportion of batches= 80/120= 0.67

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3 years ago
True or false? the goal of the scenarios phase of object-oriented problem solving is to assign responsibilities to each class.
Lena [83]

Answer:true

Explanation:

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4 0
1 year ago
Indicate to which business activity, operating activity, investing activity , or financing activity, each item relates.
zaharov [31]

The Indication of Business Activities are as follows:

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a. Cash received from customers.                              Operating Activity

b. Cash paid to stockholders (dividends).                   Financing Activity

c. Cash received from issuing new common stock.   Financing Activity

d. Cash paid to suppliers.                                             Operating Activity

e. Cash paid to purchase a new office building.         Investing Activity

Cash flows (outflows and inflows) from operating activities (OA) are generated from or spent on a company's regular or normal business activities or operations.

Cash flows (outflows and inflows) from investing activities (IA) are spent on or received from a company's investments, which yield returns in the future.

Cash flows (outflows and inflows) from financing activities (FA) are generated from or spent on debt, equity, and dividends payments to stockholders.

Thus, the above three activities are the main business activities of an entity.

Read more about operating, investing, and financing activities at brainly.com/question/16179828

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