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Lorico [155]
3 years ago
8

Exercise 5-15B Record notes receivable and interest revenue (LO5-7) On March 1, Company A provides legal services to Company B r

egarding some recent food poisoning complaints. Legal services total $9,100. In payment for the services, Company B signs a 8% note requiring the payment of the face amount and interest to Company A on September 1. Required: For Company A, record the acceptance of the note receivable on March 1 and the cash collection on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Alex787 [66]3 years ago
6 0

Answer:

March 1: Note acceptance

Debit Note receivable $9,100

Credit Accounts receivable $9,100

<em>(To record note receivable from Company B)</em>

Sept 1: Cash collection

Debit Cash $9,100

Credit Note receivable $9,100

<em>(To record cash collection of note receivable)</em>

Debit Cash $364

Credit Interest receivable $364

<em>(To record cash collection of interest receivable on note)</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 revenue on the note is calculated as: Principal x Interest Rate x Time

The total interest revenue is $9,100 x 8%/12 x 6 months = $364.

Monthly interest revenue is therefore $364 / 6 months = $60.67.

<em>The 6 months is from March 1 to Sept. 1.</em>

On a monthly basis, Company A would accrue for the interest revenue as follows:

Debit Interest receivable $60.67

Credit Interest revenue $60.67

<em>(Interest accrual on notes receivable)</em>

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qwelly [4]

Answer:

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b. Median = 35.6 ≈ 36

c. Mode = 36.6 ≈ 37

Step-by-step Explanation:

==>Given:

Class of ages in yrs

No. of cases of each class = f

Midpoint of each class = x

Product of midpoint and no. of cases of each class = fx

==>Required:

a. Mean

b. Median

c. Mode

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Lm = Lower class boundary of the median class = lower limit of the Medina class + upper limit of the class before the median class ÷ 2 = (35+34)/2 = 34.5

Σf/2 = 75/2 = 37.5

Cfb = Cumulative frequency of class before the median class = 5+10+20 = 35

fm = frequency of the Medina class = 22

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Median = 34.5 + [(37.5-35)/22] × 10

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Lm = lower class boundary of the modal class = lower limit of the modal class + upper limit of the class before the modal class ÷ 2 = (35+34)/2 = 34.5

∆¹ = difference between the frequency of the modal class & the frequency of the class before the modal class = 22 - 20 = 2

∆² = difference between the frequency of the modal class & the frequency of the class after the modal class = 22 - 13 = 9

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Mode = 34.5 + [2/(2+9)] × 10

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