1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kow [346]
2 years ago
12

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The l

oan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.
Required:


1. Record the issuance of note.


2. Record the adjustment for interest.


3. Record the repayment of the note at maturity.
Business
1 answer:
NNADVOKAT [17]2 years ago
8 0

Answer:

1.

Aug 1st,2021;  Entry to record note issuance is as followed:

Dr Note Receivable   $20,600,000

Cr Cash                      $20,600,000

(to record the issuance of note to Trico Technologies)

2.

Dec 31st,2021; Entry to record interest income from note receivable:

Dr Interest revenue receivable      $515,000

Cr Accrued Interest Income          $515,000

(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)

3. January 31st, 2022; Entry to record repayment of the note at maturity:

Dr Cash                                              $21,218,000

Cr Interest Income                           $103,000

Cr Note Receivable                         $20,600,000

Cr Interest Income receivable        $515,000

( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.

Explanation:

You might be interested in
In placing a tire order with Goodyear, River City Industrial Supply finds that the truck tires it is ordering have increased $37
andre [41]

Answer:

Inelastic

Explanation:

Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.

Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.

8 0
2 years ago
Read 2 more answers
Candonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . Su
Ksju [112]

Answer:

Candonia has a comparative advantage in the production of <u>LEMONS</u>, while Lamponia has a comparative advantage in the production of <u>COFFEE</u>. Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of <u>36</u> million pounds of coffee and <u>36</u> million pounds of lemons.

Explanation:

Since a lot of information was missing, I looked it up and found the attached graphs. The graphs referred to production of coffee and lemons, but I guess they are similar questions.

For every pound of lemons that Candonia produces, it will not be able to produce ¹/₂ pounds of coffee (opportunity cost of producing lemons instead of coffee).

For every pound of coffee that Lamponia produces, it will not be able to produce 1¹/₂ pounds of lemons (opportunity cost of producing coffee instead of lemons).

8 0
3 years ago
A _______ is a prediction stated in a way that permits it to be tested.
DochEvi [55]
<span>A "hypothesis" is a prediction stated in a way that permits it to be tested.

Hypothesis refers to a particular statement of prediction. It depicts in concrete (instead of theoretical) terms what you expect will occur in your investigation. Not all examinations have hypotheses. Some of the time an investigation is intended to be exploratory. There is no formal hypothesis, and maybe the reason for the investigation is to investigate some territory all the more completely keeping in mind the end goal to build up some particular theory or forecast that can be tried in future research. A solitary report may have one or numerous hypotheses.
</span>
5 0
3 years ago
Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of year 3, and $1,300 at the end
pantera1 [17]

Answer:212121212212121212ggthdfb b bgf bv f fsbggrb

2121211212122121212121212

Explanation:

21

4 0
3 years ago
The number of suppliers that enter and leave the market has no effect on the number of goods or services supplied.
Kobotan [32]

Answer:False

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • Tom oversees the logistics department for a holiday resort in Virginia. He has created a plan to bring in customers directly fro
    5·2 answers
  • A machine with a cost of $133,000 and accumulated depreciation of $86,500 is sold for $53,000 cash. The amount that should be re
    5·1 answer
  • Governor bush made a particular effort to appeal to which group of voters?
    14·1 answer
  • ____ teams have specific assignments, such as research, and members usually must contribute expert knowledge and judgment
    11·1 answer
  • If carolyn smith purchases office supplies for her home office from which she operates her insurance business, she is a member o
    13·1 answer
  • Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year
    6·1 answer
  • When was the first convention center built?
    12·2 answers
  • Economic fine-tuning is the (usually frequent) use of Group of answer choices fiscal policy that both balances the budget and co
    10·1 answer
  • 2 Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; no
    12·1 answer
  • A report that details prevention, appraisal, internal failure, and external failure costs is called a ________.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!