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timofeeve [1]
3 years ago
6

Brief Exercise 7-07 Grouper Family Importers sold goods to Tung Decorators for $33,600 on November 1, 2020, accepting Tung’s $33

,600, 6-month, 5% note. Prepare Grouper’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest
Business
1 answer:
Ivahew [28]3 years ago
7 0

Answer with its Explanation:

The accounting treatment are as under:

The note was issued because the customer required 6 months time to pay along with its interest.

The initial entry would be:

Dr Notes Receivable 33600

Cr Sales Revenue 33,600

When the interest would be due at the end of the note period the interest which is 5% for a year and 2.5% for 6 months.

Dr Interest Receivable 840

Cr Interest Revenue 840

When the cash will be paid the entry would be:

Dr Cash 34,440

Cr Notes Receivable 33,600

Cr Interest Receivable 840

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The capitalized cost of any investment may be determined using the equation P = A/i where P is the capitalized cost, A is the an
statuscvo [17]

Answer: True

Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.

Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value  is retained in the form of a fixed or intangible asset.

The capitalized cost of any investment can be determined using the equation, P = A/i.  Where P is the capitalized cost, A is the annual amount and i is the interest rate.

7 0
2 years ago
Recent U.S. Supreme Court decisions solidified the idea that the ADEA is designed specifically to protect older workers from dis
Lyrx [107]

Answer:

True

Explanation:

There are several Supreme Court Rulings regarding the ADEA during the past two decades, most of them concerning technical issues, but  the most straightforward ruling regarding the question is:

General Dynamics Land Systems, Inc. v. Cline, 540 U.S. 581 (2004)

The Supreme Court ruled that the purpose of the ADEA is to prevent discrimination against older workers in benefit of younger workers, but it does not prevent discrimination against younger workers in benefit of older workers.

7 0
2 years ago
Which of the following is a potential danger of offering common stock to investors?
murzikaleks [220]

Answer :It doesn't allow the entrepreneur to raise enough money. -A.

6 0
3 years ago
Read 2 more answers
g "6. Financially, why would a company: (a) increase its dividend; (b) buy back some of its common stock shares; (c) pay down so
VikaD [51]

Answer:

(a) increase its dividend;

dividends are increased for two reasons:

  1. the company has excess cash and it doesn't have any possible investments on hand
  2. the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.

(b) buy back some of its common stock shares;

  • the company has excess cash and the board and upper management believe that the stock price is too low.

(c) pay down some of its debt;

  • the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.

(d) increase its use of internal financing;

  • the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.

(e) take the public firm private

  • the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.

5 0
2 years ago
You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. If the account earns 4%
Mkey [24]

Answer:

The account balance by the end of year 3 will be : $5,283.2

Explanation:

You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.

The account balance at the end of year 1 = $2,000

The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080

The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2

7 0
3 years ago
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