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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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On February 1, a customer's account balance of $2,700 was deemed to be uncollectible. What entry should be recorded on February
Anvisha [2.4K]

Answer:

On February 1, a customer's account balance of $2,700 was deemed to be uncollectible.

The entry to be recorded on February 1 to record the write-off assuming the company uses the allowance method is:

Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700.

Explanation:

Using the allowance method, every bad debt entry is first reflected in the Allowance for Doubtful Accounts before it is taken to the bad debt expense account.

The entries above reduce the Accounts Receivable account by the amount of the write-off and reduces the Allowance for Doubtful Accounts by the same amount.  Any recovery of written off debt is also treated in the Allowance for Doubtful Accounts and the Accounts Receivable account in revised order.  This method is unlike the direct write-off method.  With the direct write-off method, the Accounts Receivable is credited with the amount of the write-off and the write-off is expensed in the Bad Debts Expense account directly.

5 0
3 years ago
Amy is concerned with her​ organization's inability to solve problems quickly. She believes that more people should be included
Licemer1 [7]

Answer: Amy is <em>concerned </em>with her​ organization's i<em>nability to solve problems</em> quickly. Several <u>subordinates have complained</u> to her that they feel alienated from the management <u>making the decisions</u> about their jobs with<u> no input </u>from them.

The element that Amy should address is the Chain of command.

Explanation:

A chain of command is a system for sending inside information of organizations with strong, vertical and authoritative structures.

The continuous flow of the chain of command clearly establishes the authority, revealing this depending on who reports to whom.

We must take into account the Authority and the Unit of command. This last is very important because it states that each supervisor must inform only one superior and like this the company preserves the continuous line of authority so all employees are heard and their ideas are taken into consideration for making decisions.  

3 0
3 years ago
Departmental overhead rates may not correctly assign overhead costs due to:
Vika [28.1K]

Answer:C.overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity ofproduction.

6 0
3 years ago
What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wi
Brut [27]

Answer:

$7,200

Explanation:

The computation of the total manufacturing overhead assigned is shown below:

= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368

= 375% per direct-labor dollar.

Now  

= $514,368 ÷ 8,037

= $64 per DL hour.

And,  

= $64  × 30 direct labor hours

= $1920.

So,  

Manufacturing overhead is

= 1920 × 375%

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8 0
3 years ago
An effective price ceiling will cause consumers to: Instructions: In order to receive full credit, you must make a selection for
photoshop1234 [79]

Answer:

gain surplus from paying a lower price

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An effective price ceiling will cause consumers to "gain surplus from paying a lower price."

This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.

At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.

Hence, consumers gain excess (more demands) by paying a lower price.

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3 years ago
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