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tatuchka [14]
3 years ago
7

On November 1, 2018, Aviation Training Corp. borrows $46,000 cash from Community Savings and Loan. Aviation Training signs a thr

ee-month, 6% note payable. Interest is payable at maturity. Aviation’s year-end is December 31.Required: Record the necessary entries in the Journal Entry.i. Record the issuance of note.ii. Record the adjustment for interest.iii. Record the repayment of the note at maturity.
Business
1 answer:
satela [25.4K]3 years ago
6 0

Answer and Explanation:

The journal entries are shown below:

1.  Cash $46,000

              To Note payable $46,000

(Being the issuance of the note is recorded)

2.  Interest expense ($46,000 × 6% × 2 months ÷ 12 months) $460

            To interest payable $460

(Being the interest expense is recorded)

3. Note payable $46,000

   Interest payable $460

   Interest expense ($46,000 × 6% × 1 months ÷ 12 months ) $230

              To cash $46,690

(Being the repayment of the note is recorded)

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The ramp at railways station has a rough surface. but Why
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Answer:

The ramp on a railway station has a rough surface to increase friction so that we do not slip while walking on it. If the surface is smooth, then the frictional force between the ramp and the feet becomes less and the chances of slipping are greater

8 0
3 years ago
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Tota
Alenkinab [10]

Answer:

Tatum Company

1. The carrying value of inventory at December 31, 2021 is:

$342,000

2. Adjusting Journal Entry:

Debit Inventory write-downs $47,000

Credit Inventory $47,000

To record the write-down of inventory value to LCNRV.

Explanation:

a) Data and Calculations:

Product   Total Cost        Total Net Reali-   LCNRV        Write-downs

                                          zable Value

101           $ 154,000          $ 117,000          $ 117,000        $ 37,000

102               111,000            127,000              111,000            0

103               77,000             67,000              67,000            10,000

104              47,000              67,000              47,000            0

Total      $ 389,000        $ 378,000        $ 342,000        $ 47,000

7 0
2 years ago
The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, i
Effectus [21]

Answer:

Relevance and faithful representation

Explanation:

The is a general consensus that accounting information must possess certain basic characteristics for it to be useful to the users of financial statement. The International Accounting Standards Board (1ASB) gave voice to this assertion when it prescribes some basic characteristics of accounting information which are 1. Understandability 2. Relevance 3. Reliability 4. Comparability. 5.    Materiality. 6.  <em>Faithful representation.</em> 7. Substance over Form. 8. Neutrality. 9. Prudence. 8. Timeliness. 9. Completeness.

Faithful representation is the requirement that financial statement must be accurate and  must show a true and fair view of the position of the business.

8 0
3 years ago
The present value of a perpetual tax shield increases as the firm's tax rate ________ and as the amount of the debt ________.
enyata [817]

Answer:

B

Explanation:

The value of tax shield is simply given as corporate tax rate times the cost of debt times the market value of debt.

If the debt is constant and perpetual, the company’s tax shield depends only on the corporate tax rate and the value of debt. Then the present value of tax shield equals the discounted value of debt

7 0
2 years ago
Suppose Kitchen HelpersKitchen Helpers manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $36. Kitc
9966 [12]

Answer:

The budgeted gross profit for July is $ 11,000.

Explanation:

total cost of goods sold per july = $8,800

total units sales = $ 550

cost of goods sold for unit = $16

budgeted sale per unit is = $36

budgeted gross profit for unit = selling price - cost of goods sold

                                                  = $36 - $16

                                                  = $20

total budgeted gross profit for july

= total units sales in july *gross profit per unit  

= 550*$20

= $ 11,000

Therefore, The budgeted gross profit for July is $ 11,000.

3 0
3 years ago
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