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NemiM [27]
3 years ago
15

On January 1, 2020, Wells Tech signed a $950,000 two-year construction contract. Wells secured $950,000 financing at 7%. In 2020

, Wells paid out $650,000; average accumulated expenditures were $375,000. Excess borrowed funds were invested, yielding $120,000 income. What should Wells report as capitalized interest at December 31, 2020?
Business
1 answer:
boyakko [2]3 years ago
3 0

Answer:

$26250

Explanation:

The capitalized interest wil be =  Average Accumulated Expenditures * Rate of Interest.

= 375000 * 7% = $26250

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Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $91 to buy from farmers and $17 to crush i
jekas [21]

Answer:

$29

Explanation:

The computation of the more profit or loss via processing one batch of sugar to the end products is shown below:

= Total sale in the case when it is processed further - processing cost

where,

Total sale in the case when it is processed further is

= $86 + $134

= $220

And, the processing cost is

= $91 + $17 + $38 + $45

= $191

So, the profit is

= $220 - $191

= $29

5 0
3 years ago
As of January 1 of the current year, the Joyner Company had accounts receivables of $50,000. The sales for January, February, an
liq [111]

Answer:

Total cash collections in February are $133600

Explanation:

The collections in the month of February will include 20% of sales made in February in account for cash sales.

Cash sales = 140000 * 0.2 = $28000

Thus, Credit sales for February are = 140000 - 28000  =  $112000

Out of these credit sales made in February, 60% will be collected in February. Thus, credit sales made in February that will be collected in February are,

February collections from February credit sales = 112000 * 0.6  = $67200

Total cash collections in February from February sales = 67200 + 28000

Total cash collections in February from February sales = $95200

In addition, out of the credit sales made in January, 40% will be collected in February.

Collection from January sales in February = 120000 * 0.8 * 0.4 = $38400

Total collections in February = 38400 + 95200   = $133600

7 0
3 years ago
Red Empire Inc., a large multinational company owned by two partners, is active in the petroleum, capital market, chemicals, ste
Nezavi [6.7K]

Answer:

D. A conglomerate

Explanation:

A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.

3 0
3 years ago
A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as paym
Igoryamba

Answer:

D. $686

Explanation:

Given that

Credit sale = 750

Return = 50

Terms 2/10

Amount received in full therefore,

= [(750 - 50) - (750 - 50 {2%})]

= 700 - (700 × 0.02)

= 700 - 14

= $686

5 0
4 years ago
Distributions of cash or other resources by a business to its stockholders are called:
Furkat [3]
Distributions of cash or other resources by a business to its stockholder are called DIVIDENDS. Dividend involves the distribution of a portion of a company's profits to a class of its shareholders. The amount to be distributed is usually decided by the board of directors.
5 0
3 years ago
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