1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stella [2.4K]
3 years ago
6

On June 1, 2021, Wildhorse & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note w

ith a face value of $106800, with payment due in 12 months. The fair value of the equipment on the date of sale was $90000. The amount of revenue to be recognized on this transaction in 2021 is
a. $106800.
b. $16800.
c. $90000.
d. $90000 sales revenue and $9800 interest revenue.
Business
1 answer:
Alja [10]3 years ago
8 0

Answer:

d. $90000 sales revenue and $9800 interest revenue.

Explanation:

Note will be recorded on the fair value of equipment and the net difference of the zero interest bearing bond and the fair value of he equipment will be recorded as the interest income.

Amount of sale = $90,000

Interest amount = $106,800 - $90,000 = $16,800

As only 7 months have been passed until end of 2021 from the date of sale

only interest of 7 months is recognized.

Interest income recognised in 2021 = $16,800 x 7 /12 = $9,800

You might be interested in
Which statement is true of an e-distributor? a. An e-distributor offers services from different vendors in separate packages. b.
sveticcg [70]

Answer:

The correct answer is letter "B": An e-distributor offers fast delivery of a wide selection of products and services.

Explanation:

E-distributors are delivery companies that base their orders in electronic purchases made from a variety of goods and services. The main characteristic of these organizations is the speed in which the good or service can be shipped and is what may differentiate them from one another.

6 0
3 years ago
A picking ticket is affixed to the inventory package sent to the customer and identifies the customer and the contents of the pa
Nady [450]
True ...
hope it helped
6 0
3 years ago
A contract is ____________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.
Paladinen [302]

Answer: Voidable contract.

Explanation: Voidable contract is enforceable by law at the option of one or more parties but not an option of the the other parties. A voidable contract can still be considered valid if its not cancelled by the aggrieved party within a stipulated time. A contract is said to be a voidable contract if the contract is entered into without the free consent of the party. Typical grounds for a contract being voidable include coercion , undue influence and fraud. A contract made by a minor is often voidable.

It is a valid contract which may be either affirmed or rejected at the option of one of the parties involve.

7 0
3 years ago
Durable goods and non-durable goods comprise approximately ________ of the supply side of the gdp.
kati45 [8]
<span>Durable goods and non-durable goods comprise approximately 45% of the supply side of the GDP. If the government reduces the taxes o the companies and the industries then their production will likely increase and which may will lead to the reduce in the price level s when it reaches the consumers, this is called the supply side economics.</span>
7 0
3 years ago
A stockholder sold her shares and made a profit of $1,403. If that is a profit of 27%, how much were the shares worth when she o
tigry1 [53]

The worth of the shares when the stockholder originally purchased them is $1105.

<h3>What are shares?</h3>

Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends.

It is assumed that the purchase price of the share is $100. As the stockholder sold her shares for $1,403, making a profit of 27%, it implies that:

  127 = $1,403

∴ 100 = $1,403/127 × 100

        = $1104.72

Therefore, $1104.72 is the original purchase price of the share.

To learn more about share, click here:

brainly.com/question/28392295

#SPJ1

7 0
1 year ago
Other questions:
  • Sterling Inc. has two long-term notes outstanding. One is a five-year note for $50,000. An equal amount of principal must be rep
    13·1 answer
  • Economists refer to this pattern, the ___________________________________, which means that as a person receives more of a good,
    6·1 answer
  • Assessment
    10·1 answer
  • A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be
    11·2 answers
  • JRN Enterprises just announced that it plans to cut its dividend payout in the next year (Div1) from $3.00 to $1.50 per share an
    14·1 answer
  • Sheffield Company had an investment which cost $250000 and had a salvage value at the end of its useful life of zero. If Mussina
    9·1 answer
  • Now Inc. released its annual results and financial statement. Grace is reading the summary in the business pages of today's pape
    11·1 answer
  • Exercise 7-6 (Algo) Cash discounts; the gross method [LO7-3] Harwell Company manufactures automobile tires. On July 15, 2021, th
    5·1 answer
  • What is the relationship between risk and return?
    12·1 answer
  • On March 7, a buyer and a seller execute a contract for the purchase of the seller's property. Closing is set for June 10. On Ap
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!