Answer and Explanation:
1. The Journal entry is shown below:-
Notes receivable Dr, $33,000
To Sales revenue $33,000
(Being sales is recorded)
2. The computation of interest is shown below:-
Interest = $33,000 × 4% × 6 ÷ 12
= $660
3. The Journal entry is shown below:-
Cash Dr, $33,660
To Interest income $660
To Notes receivable $33,000
(Being collection of notes receivable is recorded)
Answer:
It will be reported as gain.
Explanation:
If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>
It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment
What is the product that you want to find where it comes from?
Answer:
The correct answer is Option A.
Explanation:
The concept of double entry says for every debit entry, there must be a corresponding credit entry. This is necessary for the journal entries to balance, that is, the total of the debit balance must always equal the credit balance.
The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.
Answer:
The correct answer is option a.
Explanation:
In 2007-2009 financial crisis occurred globally which originated in the US. It was triggered in the US because of the collapse of the housing bubble which caused the price of houses to decline.
The housing bubble was backed by mortgages securities. The percentage of lower quality or subprime mortgages increase around 2004-06.
This reduction in the asset value for mortgage securities caused the banks to reduce their lending as the debts on consumers and businesses were increasing.
This caused the credit crunch in the year 2008.
