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DanielleElmas [232]
3 years ago
13

On January 1, Avers Co. borrowed $10,000 by extending their past-due account payable with a a 60-day, 8% interest-bearing note.

On March 1, the due date, Avers pays the amount due in full. This entry would be recorded by Avers with a debit to (Accounts Payable/Notes Payable/Cash)_____ in the amount of _______.
Business
1 answer:
babymother [125]3 years ago
4 0

Answer:

Notes payable; $10,000

Explanation:

Given that,

Borrowing amount = $10,000

Time period = 60 day

Interest rate = 8%

On the due date of the note, avers co. paid the amount.

Therefore, this entry would be recorded by Avers with a debit to Notes payable with an amount of $10,000.

Interest amount = $10,000 × (60 ÷ 360) × 0.08

                           = $10,000 × 0.17 × 0.08

                           = $136

(Note: Assuming 360 days in a year)

Therefore, the Journal entry is as follows:

Notes payable A/c     Dr. $10,000

Interest Expense A/c Dr. $136

To cash                                             $10,136

(To record Avers pays the amount due in full)

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3 years ago
$1,000 of cash was received in advance of performing services. By the end of the period, $300 had not yet been earned. (The Unea
adelina 88 [10]

Answer:

C. Unearned revenue would be debited for $700.

E. Service revenue would be credited for $700.

Explanation:

As we recieve the payment in-advance we take the obligation to perform our duties with the customer.

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8 0
3 years ago
Indirect competition includes goods or services which are: a.closely priced. b.indirectly distributed. c.similar. d.substitutes.
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Answer:

Substitutes

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While direct competition occurs between companies producing almost the same products , for example breweries producing beers , indirect competition happens between companies selling goods that are not directly similar but can also be used to achieve the same purpose if the other good is not available. Indirect competitors always have a way of sharing or winning over potential customers.

5 0
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In a new margin account, a customer buys 300 shares of ABC at $40 per share, 100 shares of the Ajax Mutual Fund at $24, and 10 P
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Total payment required will now be:

= $6,000 + $2,400 + $4,000

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3 0
3 years ago
Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
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Answer:

D. Separation of Duties

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Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

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