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goldfiish [28.3K]
3 years ago
7

Stellar Enterprises made the following entry on December 31, 2020. Interest Expense 6,490 Interest Payable 6,490 (To record inte

rest expense due on loan from Anaheim National Bank) (a) What entry would Anaheim National Bank make regarding its outstanding loan to Stellar Enterprises
Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

Interest Receivable               6,490 debit

              Interest Revenue                6,490 credit

(To record interest revenue from Stellar Enterprises loan)

Explanation:

The banks accounting will reflect the  accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.

It will recognize the interest revenue from the accounting period

and will declare the interest receivable for the same amount.

<u>From this we can deduct:</u>

the payable from one entity is a receivable for another entry.

the interest expense from one firm will be interest revenue for another.

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3 0
2 years ago
Diamond Machine Technology has invested $250,000 in developing a sharpener. Each sharpener costs $3 to make. In addition, fixed
makkiz [27]

Answer:

Diamond Machine Technology

a) Markup price = $4.03

b) Target return price = $3.60

Explanation:

Investment = $250,000

Cost of each sharpener = $3

Additional fixed costs = $10,000

Quantity of sharpeners to sell for the year= 100,000

Markup on sales = 30%

Return on Investment (ROI) = 20%

Markup price = (($3 * 100,000) + $10,000))* 1.3

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Return on Investment:

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5 0
3 years ago
On December 31, 2017, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred
Talja [164]

Answer:

earnings per share = (net income - preferred dividends) / weighted common stocks = ($900,000 - $32,000) / 424,000 shares = $2.05 per share

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Explanation:

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diluted stocks:

[($20 - $18) / $20] x 30,000 = 3,000 diluted shares

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Mumz [18]

Answer:

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GaryK [48]

Answer:

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