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GalinKa [24]
3 years ago
6

Santana Industries purchased a supply of electronic components from ABC Corporation on October 1, 2020. In payment for the $5 mi

llion purchase, Santana issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. What is the amount of interest expense that Santana will report in its income statement for the year ended December 31, 2020?
Business
1 answer:
pshichka [43]3 years ago
6 0

Answer: they will report an interest expense of $150000 in December 2020

Explanation:

firstly we calculate how much interest will be accumulated for the whole year so we are given a $5 million Dollar purchase which is the amount that will accumulate interest over time, then we have been told the company ha issued a 1 year installment note therefore we have a time frame.

so now we will calculate the yearly interest of $5 million :

$5 000000x12% = $600000 so the company will accumulate this interest yearly then we divide this amount by 12 to get the monthly interest.

$600000/12 = $ 50000 per month interest thereafter we will multiply the monthly interest of $50000 by 3 months which is months from October to December.

therefore the interest expense to be reported on the December 2020 income statement is $50000 x 3= $150000

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blagie [28]

Answer:

A. Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population.

Explanation:

As the restaurant is famous and serves the Mexican cuisine, it needs data that will provide information about the interests of people in Mexican Cuisine.

The information published by the US Bureau about the population of Mexican citizens growing will help the restaurant identify the areas where it will find its most probable customers for the Mexican Cuisine.

The census will provide the maximum information about the regions with the population with Mexican people as the chances to like Mexican cuisine is maximum with Mexican population.

7 0
3 years ago
Campbell Construction Company expects to build three new homes during a specific accounting period. The estimated direct materia
Alina [70]

Answer:

The driver for employees fringe benefits is direct labor costs whereas the driver for indirect material costs is direct material costs

The total cost of each home is as follows:

Home 1 $188140

Home 2 $268860

Home 3 $408910

Explanation

Find the breakdown of the costs in the attached excel file.

Download xlsx
6 0
3 years ago
The economy’s output, real GDP, has drastically dropped. What are the possible fiscal policy solutions to return the real GDP to
Misha Larkins [42]

Answer:

1. decrease taxes

2. increase government spending

Explanation:

GDP stands for Gross Domestic Product. It is a country total produces in terms of services and goods in an fiscal year or financial year.

According to the question, if the real GDP drops, then a fiscal policy to increase the GDP, the Government should decease the taxes as it will motivate the workers and the employees to work more to increase the products.

Also increasing the spending of the Government in the form of subsidies so that output will increase.

Therefore, the possible fiscal solutions to make the real GDP rise to a higher level are  :

1. decrease taxes

2. increase government spending

6 0
3 years ago
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a
mezya [45]

Answer:

Allocated salary to Grinding = $18,000

Explanation:

<em>The Salary would be allocated between the department using the number f employees as the basis of allocation. This is so because number of employees would be a reasonable factory that influences the amount incurred as salary expense.</em>

This is done as follows:

Allocated Salary expense =

Number of employee in a department/Total employee× Salary

Allocated salary to Grinding Department

= 1500/2500× $30,000=$18,000

Allocated salary to Grinding = $18,000

4 0
3 years ago
Robertson, while a minor, contracted to borrow money from his father for a college education. his father mortgaged his home and
vodomira [7]

Answer:

Generally a minor cannot be held responsible for any contracts that they sign unless they involve basic necessities, e.g. food, clothes, shelter. But in this case, Robertson ratified the contract when he was already an adult (I guess he was an adult when he graduated as a dentist or during the next three years). Once Robertson ratified the contract, he cannot disaffirm it anymore.

3 0
3 years ago
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