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yarga [219]
3 years ago
8

On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing

a 4% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $31,000 on the principal plus the interest accrued from the date of the preceding payment. Journalize the entry to record
(a) the transaction on June 30,
(b) the payment of the first installment on December 31, and
(c) the payment of the second installment the following June 30. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
sammy [17]3 years ago
5 0

Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars                                                                  Debit      Credit

Land and Building (460000 + 520000)                 $980,000

Cash Paid                                                                           $360,000

Mortgage Payable (980,000 - 360,000)                         $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

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The demand for most products varies directly with changes in consumer incomes. Such products are known as_________.
Alisiya [41]

Answer:  

Normal goods

               

Explanation:

In simple words, normal goods refers to the goods which re necessary for the survival for the survival for re consumer and the consumer do not take its quality into consideration while making a purchase decision.

The demand for such goods have a positive relationship with the income of consumer, that is, when the income or wages of consumer increase the demand for  such goods also increases and vice versa.

The increase in demand for normal goods by consumer is sometimes also seen as an indicator of an economic growth. Clothes, vegetable and medicines are some of the many examples of normal goods.

3 0
3 years ago
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Why did the Thibodaux workers go on strike? Was the strike successful? What accounts for its success or lack of success
Murljashka [212]

Answer:

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No, the strike was not successful.

The unscheduled return to work by some workers before the end of the strike, makes it unsuccessful. The aftermath of the strike resulted to violence leading to death of many black workers and their families, as well injuries to many others.

4 0
3 years ago
So you them the answer you submit must be the d operators; they are pald $8. 10 an hour each and work 40 hours a week and 52 wee
Crank

The net present value for all favor keeping the canon copiers $6580

<h3>What is net present value?</h3>

The net present value, also known as net present worth, is applied to a series of cash flows that occur at different dates. The present value of a cash flow is determined by the time elapsed between now and the cash flow. It is also affected by the discount rate. The temporal value of money is accounted for by NPV.

The term net present value (NPV) refers to the current total value of a future stream of payments. If the net present value (NPV) of a project or investment is positive, it signifies that the discounted present value of all future cash flows associated to that project or investment will be positive, and hence appealing.

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1 year ago
A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.
VashaNatasha [74]

A 30 percent reduction in product and service variety will affect the efficiency of a supply chain. In this question, the given statement is false.

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As given in the question that if there is some percentage of reduction in product and services variety then it will not affect the supply chain efficiency. This is false. Because reducing the variety ultimately increase the efficiency of the supply chain and its related processes.

Variety Reduction:

When you reduce the different available number of solutions to meet the same need is referred as variety reduction. In the supply chain, when reducing the different products and services that fulfill the same need will affect the efficiency of the supply chain.

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6 0
2 years ago
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company manag
denpristay [2]

Answer:

Cash                            7,200,000

Discount on Investment 800,000

            Interest revenue 8,000,000

investment of bonds 240,000,000

discount on bonds      (32,200,000)

The bonds will be reported for a net total of 200,800,000

Explanation:

The company, as it has the intent and ability to hold the bonds until maturity will not recognize gain or losses during the period.

It will just amortize the premiium or discount in the bonds

Value            240,000,000

Purchase at<u> (200,000,000)  </u>

Discount of    40,000,000

December 31th entry:

240,000,000 x 6%/2 = 7,200,000

Market rate:

200,000,000 x 8%/2 = 8,000,000

amortization of 800,000

5 0
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