All categories

4 years ago

RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed by a customer.

Business

1 answer:

daser333 [38]4 years ago

5 0

Answer:

Explanation:

The journal entries are shown below:

a. Notes receivable A/c Dr $8,000

To Accounts receivable $8,000

(Being receipt of note is recorded)

b. Interest receivable A/c Dr $80

To Interest revenue A/c $80

(Being accrued interest is recorded)

The computation of accrued interest is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $8,000 × 6% × (2 months ÷ 12 months)

= $80

The 2 months is calculated from November 30 to December 31

c. Cash A/c Dr $240

To Interest receivable $80

To Interest revenue $160

(Being cash received in respect of interest accrual is recorded)

The computation of accrued interest is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $8,000 × 6% × (4 months ÷ 12 months)

= $160

The 4 months is calculated from November 30 to April 30

d. Cash A/c Dr $10,200

To Notes receivable A/c $10,200

(Being the receipt of the payment is recorded)

You might be interested in

The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% pe

hoa [83]

Answer:

The company's current stock price is $ 18.62.

Explanation:

To calculate the company's current stock price we have to use first the following formula to calculate the: Expected Return of stock

Expected Return of stock = Risk Free Rate+ Beta * Market Risk Premium

Expected Return of stock= 4+1.15*5

=4+5.75

Expected Return = 9.75%

Then, we can calculate the stock price with the following formula:

Price = Dividendat year 1/ Return- Growth

D1 =0.75*105.5%

=0.79125

Price =0.79/( 0.0975-0.055)

=18.62

The price is $ 18.62

6 0

4 years ago

Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased t

TEA [102]

Answer:

The correct answer is b. Cash Cow.

Explanation:

Multinationals look beyond their core business for additional sources of income to increase their income statement. Secondary income is those from products or services that differ from the main ones within a business. And despite their name, they can play a leading role in a brand's strategy and can give a vital boost to a company's revenue.

4 0

3 years ago

Ability to visualize and implement possible business solutions

likoan [24]

This is known as Data Visualization

4 0

3 years ago

Terrence contributed $15,000 to a foreign charitable organization. At the time of the contribution, the organization told him th

Alexxx [7]

Answer:

B, $7,500

Explanation:

Deductible tax or tax deduction is the reduction or deduction that reduces an individuals tax liabilties by lowering his/her taxable income.

Deductible tax from charity contributions is up to 50% of the contributed amount for income tax purposes.

In the case of Terrence's contribution in the question, there is a clause that says to ignore income limitations.

We therfore take 50% of $15,000 which gives us $7,500 as the amount that is deductible from the contribution.

i.e; (50÷100) × $15.000

Cheers.

7 0

4 years ago

Sharon is opening a new pizza restaurant that will use a combination of workers and ovens to produce pizzas. Sharon knows from e

mr Goodwill [35]

Answer:

Q+X = [4K^1/2L^1/2] + X

Explanation:

L = labour = workers

K = capital = ovens

You don't have the exact value of Q since the values of K and L are not given.

You should however note that Q is less than or equal to 19 pizzas/hour, since Sharon sought to stretch his capacity by producing up to 20 pizzas/hour owing to the presence of a competitor.

Assuming the distance/difference between 20 and Q is X (a positive number).

Sharon's new hourly cost function will be:

$Q+X = [4K^1/2L^1/2] + X$

Q+X = 20 and the law of mathematics states that whatever you add to the left hand side must be added to the right hand side, hence the addition of X to both sides of the equation instead of the left hand side alone.

The function can now be rewritten as 20 = [4K^1/2L^1/2] + X

where X = 20 - Q

7 0

3 years ago