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lara31 [8.8K]
3 years ago
10

On January 1, Parma, Inc. borrowed $100,000 cash from First National and issued a two-year promissory note in that amount. Inter

est of $5,000 was payable semiannually on June 30 and December 31. Which account will be debited when Parma records the entry relating to each of the four interest payments
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

Interest expense account

Explanation:

In accounting, interests paid on loan, promissory or any other forms of loan written off to the income statement as an expense in the period in which they are incurred.

Therefore, the interest expense account will be will be debited when Parma records the entry relating to each of the four interest payments. The other leg of the account is to credit the profit and loss account to complete the record.

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Current operating income for Bay Area Cycles Co. is $40,000. Selling price per unit is $100, the contribution margin ratio is 20
svlad2 [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Operating income=  $40,000.

Selling price per unit is $100

Contribution margin ratio= 0.20

Fixed expense is $160,000

<u>First, we need to calculate the unitary variable cost. We can use the contribution margin ratio formula:</u>

<u></u>

contribution margin ratio= (selling price - unitary variable cost) / selling price

0.2 = (100 - unitary variable cost) / 100

unitary variable cost= 80

<u>Now, the contribution margin:</u>

Contribution margin= 100 - 80= $20

<u>Finally, the number of units being sold:</u>

Total contribution margin= operating income + fixed costs

Total contribution margin= 40,000 + 160,000= 200,000

Unitary contribution margin= Total contribution margin/number of units

20= 200,000 / number of units

number of units= 200,000/20

number of units= 10,000 units

6 0
3 years ago
Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Fees earned $900,
Virty [35]

Answer:

Net income is $135,00 from the income statement.

Explanation:

In the Income Statement for a particular year, all expenses all expenses for the year are deducted from the income to arrive at net income for that year. Based this, we have:

Paradise Travel Service Income Statement For the Year Ended May 31, 2018

<u>Details                                         ($)   </u>

Fees earned                          900,000

Office expense                    (300,000)

Miscellaneous expense         (15,000)

Wages expense                  <u> (450,000) </u>

Net income                          <u>  135,000 </u>

Therefore, net income is $135,00 from the income statement.

6 0
3 years ago
Required-: JOURNAL ENTRY (ACCOUNT)
damaskus [11]

- Hey there , ronisha!

Answer:

\large{ \tt{SEE \: THE \: ATTACHED \: PICTURE}}

\large{ \tt{E \: X \: P \: L \: A \: N \: A \: T \: I \: O \: N}} :

  • Full settlement generally means DISCOUNT ALLOWED.

  • Firstly , Read out the question and try to understand. It says we purchased some stuffs of Rs 30000 from the sansee stores and we payed Rs 28000 in full settlement which implies that we received the discount of Rs 30000-28000 i.e Rs 2000.

  • You must have known the rules for debit and credit. As we know In case of personal account , Debit : The receiver , We have sansee stores as the receiver so we placed it in debit side.

  • Remember: When the question says that the cash is payed through cheque , you should always consider cheque as a bank. Now , In the case of personal account , Credit : The giver. Who's the giver? Of course , bank! So , we placed it in credit side.

  • Now , In case of nominal account , Credit : the incomes or gains . The question says we received the discount so obviously it's not expenses. So, We placed discount received in credit side. You must have studied that Every debit should have equal credit. And we're done!

- Hope this helps! Please let me know if you have any questions regarding my answer and also don't hesitate to reach out to me if you need any other help! :)

7 0
2 years ago
Colgate manufactures a fruit-flavored spongebob squarepants toothpaste for kids. the age-based variable that distinguishes the m
satela [25.4K]
Is an example of Market segmentation, which divides the market in half, due to a different demographics like age, target market etc.
The new target market that divides the market is possibly ages: 6-9

Hope this helps.
8 0
3 years ago
Read 2 more answers
What are the roles of agriculture is to maximize the production in the agricultural sector ? ​
Serhud [2]

Answer:

introduction of modern machines for harvesting

7 0
3 years ago
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