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aliina [53]
4 years ago
14

When an interest-bearing note is dishonored at maturity and ultimate collection is expected, the entry for the dishonoring, assu

ming no previous accrual of interest should include a.a debit to Allowance for Doubtful Accounts. b.only a credit to Notes Receivable. c.a credit to Notes Receivable and Interest Revenue. d.a credit to Notes Receivable and Interest Receivable. Answer:c
Business
2 answers:
tresset_1 [31]4 years ago
8 0

Answer:

The correct answer is C. a credit to Notes Receivable and Interest Revenue.

Explanation:

When this registration is made, what occurs is to decrease the obligation they have with our organization, and an increase in income due to the recognition of the interests effectively recognized at the expiration of the obligation. Dishonoring the note means recognizing that we no longer have a callable value, and that the value receivable is extinguished as a result of the end of the agreed period of permanence.

Pachacha [2.7K]4 years ago
3 0

Answer: c. a credit to Notes Receivable and Interest Receivable

Explanation: Notes are a written promise to pay a specific amount of money at a future date and as a financial instruments can be issued with or without interest; and are recorded at face value and classified in the balance sheet based on maturity time. A note is said to be dishonored when the maker of the note fails to pay as at when due. However, if ultimate collection is expected, an entry is made as follows: a credit to interest income and also a credit to notes receivable.

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Consider an assembly line with 20 stations. Each station has a 0.5% probability of making a defect. At the end of the line, an i
sashaice [31]

Answer:

<h2>Assembly Line</h2>

1. Probability that a unit ends up in rework = Probability of defect in 20 stations multiplied by the probability of catching defects = 0.8%(1% x 80%) = 0.008

2. Probability that a defective unit is shipped = Probability of defective units during inspection plus Probability of defective units during rework = 25% (20% + (100-95%)) = 0.25

Explanation:

a) Probability of defect in 20 stations = 0.5% x 20 = 1%.  Each station has a 0.05%

b) Probability of defective units during inspection = 20% (100% - 80)

c) Probability of defective units during rework = 5% (100% -95)

c) Probability is the likelihood or chance of an event occurring.  Divide the number of events by the number of possible outcomes. This will give us the probability of a single event occurring.

8 0
3 years ago
Carrie bought a house 5 years ago for $200,000. at that time, she borrowed $195,000 from her bank. the house is now worth $225,0
jenyasd209 [6]
<span>Her PMI will automatically be dropped when her mortgage balance drops to 78% of the home's ORIGINAL value of $200,000. The new value of the home is not relevant.</span>
5 0
3 years ago
In the financial year 2016, for every $100 in revenues, microsoft earned $21. 5 in profit, while apple earned $20. 6 in profit.
anzhelika [568]
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7 0
2 years ago
Sparrow Products Industries stock is currently selling for $80. It just paid its annual dividend of $2 after reporting an ROE of
sweet-ann [11.9K]

Answer:

Expected return on stock = 9.68%

Explanation:

<em>Cost of equity can be ascertained using the dividend valuation model. The model states that the price of a stock is the present value of future dividends discounted at the required rate of return.  </em>

Ke=( Do( 1+g)/P ) + g  

g- growth rate in dividend, P- price of the stock,  Ke- required return, D- dividend payable in now

DATA

D0- 2, g- ?,  P- 80

Note that the growth rate in dividend is missing so we wold work it out as follows:

<em>g = dividend retention rate ×Return on equity</em>

g = 0.15*0.5 = 7%

Expected return on stock

= (2× (1+0.07)/80)  +  0.07 = 0.09675

Expected return on stock =  0.09675  × 100 = 9.675

Expected return on stock = 9.68%

6 0
3 years ago
Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace doilies. If his reve
vodka [1.7K]

Answer:

$5,000

Explanation:

Current profit = 50000 - 20000

= 30000

30000 - 25000 = 5000

3 0
3 years ago
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