Answer:
a. $58,800
b. $57,820
Explanation:
Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.
a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.
b. Discount value
= $58,800 × 10% × 60/360
= $980
Proceeds
= Face/par value of the note - Discount value of the note
= $58,800 - $980
= $57,820
Answer:
Dr interest expense $2448
Dr interest payable $3060
Dr Notes payable $61,200
Cr cash($2448
+$3060
+$61,200) $ 66,708.00
Explanation:
The interest accrued at 31st December 2022 is interest for 5 months which is calculated thus:
interest as at 31st December=5/12*12%*61,200=$3060
On that interest expense would have been debited while interest payable is credited with $3060
On the due date, interest for another months need to computed as follows:
interest for four months=4/12*12%*61,200=$2448
Answer: Over-diversification
Explanation:
According to the given question, the Over-diversification is one of the concept in the business in which the an organization make a large number of investment of the different types of asset where the expectation of the marginal cost become high.
Greg is one of the leading company CEO and for the growth of the company he has decided for acquiring some small chemical firms for increase the productivity but the shareholder are not happy with this due to the over-diversification concept.
The over-diversification also increase the risk in the investment process but there is always high possibility of marginal benefit in the business. Therefore, Over-diversification is the correct answer.
Depreciation of noncurrent operating assets is an accounting process for the purpose of allocating asset costs over the periods benefited by use of the assets.
Depreciation refers to an expense for a business to use non-current asset in order to generate economic benefits. Here the purpose of depreciation is to have balance sheet report the current value of an asset.
An accounting method used to allocate the cost of a tangible or physical asset over its useful life is known as depreciation. Companies usually take depreciation regularly so they can move their asset costs from their balance sheets to their income statements.
Hence, depreciation of noncurrent operating assets are benefited by use of the assets.
To learn more about depreciation here:
brainly.com/question/15024945
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Answer:
$8400
Explanation:
to find 3% you multiply 280,000 by 0.03
