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Ivahew [28]
3 years ago
12

On the last day of October, Wicker Company borrows $120,000 on a bank note due in 90 days (3 months) at %11 percent. Interest is

not included in the face amount. Assume that Wicker properly recorded the borrowed amount at October 31. If no payments have been made with respect to this loan, should a liability be recorded at Wicker's fiscal year end of December 31, and if so, what is the amount of the liability that should be record? Assume that each month is 30 days.
Business
1 answer:
rodikova [14]3 years ago
3 0

Answer:

interest expense 3,000 debit

   interest payable       3000 credit

Explanation:

We will recognize the accrued interest for the period Nov 1st to Dec 31th

 principal   x   rate     x    time

  120,000   x 11%/12   x 3 months = 3,000

We divide the rate by 12 as there is express as annual rate and we need to match with time, which is months.

The entry will recognize interest expense for 3,000

and interest payable for 3,000

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Answer:

C. stock indexes are unbiased and perfect indicators of market activity.

Explanation:

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Usually indexes monitors a group of securities. Indexes can be broad based or specialised.

Indexes are statistically derived benchmarks that securities are measured against. They are however not unbiased and perfect indicators of market activity.

This is because investor behaviour cannot be guaged statistically.

However indexes replicate the market activity in a certain segment of the stock market, serve as a benchmark to evaluate investment manager performance, and are based on criteria that define the market segment of interest.

6 0
3 years ago
On January 1, 2017, Sunland Industries had cash and common stock of $196000. At that date the company had no other asset, liabil
Dafna1 [17]

Answer:

$32,980

Explanation:

The computation of comprehensive income is shown below:-

Comprehensive income = Cash dividend + Unrealized holding gain

= $11,800 + $31,800

= $32,980

Comprehensive income includes net profit and other complete or compression  profits.

Net revenue involves operating and non-operating income, net of expenses . Other comprehensive profits consisted of unrealized gains or losses, cash flow hedges.

So in this question we considered the dividend and unrealized holding gain as an comprehensive income

5 0
2 years ago
Moe ’s Electric sales vacuum cleaners with a one-year warranty to fix any defects. For the current year, 200 vacuums have been s
vekshin1

Answer:

$900

Explanation:

Given that

Total repair up to end of year = 12

Estimated need to be repaid = 8

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The computation of warranty expense for the current year is shown below:-

For computing the warranty expense for the current year first we need to find out the total repaired cost which is here below

Total repaired cost = Total repair up to end of year + Estimated need to be repaid

= 12 + 8

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Warranty expense for the current year = Average cost × Total

= $45 × 20

= $900

Therefore for computing the warranty expense for the current year we simply applied the above formula.

5 0
3 years ago
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3 years ago
The term value chain means we include the supply chain in our analysis and management with:
irakobra [83]
The term value chain means we include the supply chain in our analysis and management with B) the downstream portion of the chain and distribution, such as marketing. 
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3 years ago
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