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yulyashka [42]
3 years ago
11

On October 1, Eder Fabrication borrowed $55 million and issued a nine-month, 13% promissory note. Interest was payable at maturi

ty. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.
Business
1 answer:
vesna_86 [32]3 years ago
8 0

Answer:

Issuance of the note:

Debit Cash $55,000,000

Credit Notes payable $55,000,000

<em>(To recognize notes payable)</em>

On December 31:

Debit Interest expense $5,362,500

Credit Interest payable $5,362,500

<em>(To recognize the interest payable at Dec 31)</em>

If Eder Fabrication chooses to pay off on December 31, the following entries would apply:

Debit Notes payable $55,000,000

Debit Interest payable $5,362,500  

Credit Cash $60,362,500

<em>(Payment of notes payable)</em>

Explanation:

Note 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.

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

In this case, the total interest expense is $55,000,000 x 13%/12 x 9 months = $5,362,500.

Monthly interest expense is therefore $5,362,500 / 9 months = $595,833.33.

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The answer is letter a, it is because when doing a successful pitch or in order to achieve one, a person is not even required to stand behind a podium as it does not necessarily need or refer to a specific place to stand on when delivering a pitch but it is more important to show the product or service to attract the consumers.
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3 years ago
Force Corporation is owned equally by Luke and his sister Leia, each of whom own 200 shares in the company. Force redeemed 100 s
murzikaleks [220]

Complete question:

Force Corporation is owned equally by Luke and his sister Leia, each of whom own 200 shares in the company. Force redeemed 100 shares of Luke’s stock in the company on December 31 of this year paying Luke $1,000 per share. Luke’s income tax basis in each share is $500. Force has total E&P of $800,000. What are the tax consequences to Luke as a result of the stock redemption?

a)$50,000 capital gain and a tax basis in each of his remaining shares of $500.

b)$50,000 capital gain and a tax basis in each of his remaining shares of $1,000.

c)$100,000 dividend and a tax basis in each of his remaining shares of $500.

d)$100,000 dividend and a tax basis in each of his remaining shares of $1,000.

Answer:

$50,000 capital gain and a tax basis in each of his remaining shares of $500.

Solution:

The sale should be viewed as an swap as Luke decreases the shareholding from 50 per cent (200/400) to 33 per cent (100/300).

Luke is not regarded as the shareholder of any property held by his dad.

Luke records a capital benefit of $50,000, measured as $100,000 – $50,000.

∴ $50,000 capital gain and a tax basis in each of his remaining shares of $500.

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Esther will be helping Heather with her firm's billing but heather doesn't want Esther to have access to her firm's settings or
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QuickBooks is an accounting software that's used by businesses for payments, payroll functions, etc.

From the information given, Heather doesn't want Esther to have access to her firm's settings or her clients' Quickbooks Online companies, therefore the best option will be to set the access to custom.

By setting the access to custom, Esther won't be able to have access to the settings. On the other hand, if the access was set to basic just like in the second option, Esther will have access. Also, it's important to set <u><em>"manage your clients</em></u>" to No when Esther will be in charge.

Read related link on:

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When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and _
Misha Larkins [42]

When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and exclusive

<h3>What are the 3 distribution intensity levels?</h3>
  • A distributor is referred to as someone who buys goods, warehouses them, and then distributes them to customers.
  • They function as a middleman between producers and retailers or customers, rather than acting in their own best interests.
  • In most cases, distributors work together with customers and producers.
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The importance of having a positive attitude is overemphasized. Competence is the most important factor in determining work succ
nadya68 [22]
True it helps ease my mind lol
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