The following journal entry will be passed in the books of accounts and the interest expense is calculated to an amount of $9600
<u>Explanation:</u>
Given data:
amount of note: $200000, annual principal payments to be made each year at December 31st = $40000, interest amount to be charged = 6 percent, duration of note = 5 years
the following calculation is made in order to find out the amount of interest:
Amount of note minus principal payment multiply with rate of interest
now, putting the figures in formula:
interest = 200000 minus 40000 = $160000 multiply with .06 = $9600
Thus, the interest amount = $9600
The interest expense will be debited with an amount of $9600 in the books of accounts.
Answer:
True
Explanation:
For a stock to be in equilibrium, two conditions are necessary:
(1) The stock's market price must equal its intrinsic value as seen by the marginal investor;
(2) the expected return as seen by the marginal investor must equal his or her required return.
Answer:
$4,850
Explanation:
The computation is shown below:
Total cost when the production is 13,000 units
Direct materials $10,920
Direct labor $14,690
Variable overhead $16,380
Total $41,900
And, the other case
Their new cost on supplier offer is
= $2.85 × 13,000 units
= $37,050
In the case when the order is accepted So the net income would increased by
= $41,900 - $37,050
= $4,850
