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denpristay [2]
3 years ago
7

On October 1, Vaughn's Carpet Service borrows $349000 from First National Bank on a 4-month, $349000, 9% note. What entry must V

aughn's Carpet Service make on December 31 before financial statements are prepared
Business
1 answer:
____ [38]3 years ago
3 0

Answer:

Dr Notes Payable 349,000

Dr Interest Payable 10,470

Cr Cash 359,470

Explanation:

Preparation of Vaughn's Carpet Service Journal entry

Since we were told that Vaughn's Carpet Service borrows the amount of $349,000 on 1st October from First National Bank based on a 4-month, $349,000, 9% note the transaction will be recorded as :

Dr Notes Payable 349,000

Dr Interest Payable 10,470

Cr Cash 359,470

$349,000 +($349,000 *.09* 4/12)

=$349,000+10,470

=$359,,470

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Effect of Transactions on Cash Flows
iren [92.7K]

Answer:

Explanation:

a. Cash paid for retirement of bonds would be deducted from cash flow's financing activities by 411,000

b. Cash received from issue of common stock would be added to the cash flow statement's financing activities as 440,000 [22*20,000]

c. Cash received from sale of equipment would be added to the cash flow statement's investing activities as 60,000

d. Cash paid for purchase of land would be deducted from cash flows from investing activities by 650,000

e. Cash paid for purchase of building would result in deduction from investing activities by 50,000

f. Cash received from issued of bonds would be added to the cash flows from financing activities as 490,000

[500,000/100 * 98]

g. Cash paid for purchase of treasury stock would decrease cash flows from financing activities by 332,500

[10,000*33.25]

h. Cash paid for dividents would be deducted from cash flow from financing activities by 1,320,000

[1,000,000 - 120,000]*1.50 = 1,320,000

6 0
4 years ago
What are three things not to do while driving and three things to do while driving?
Verdich [7]
Do not do

text, drink, speed

do

watch road, hands on wheel, be safe
6 0
3 years ago
Read 2 more answers
You purchased a bond at a price of $2,100. In 30 years when the bond matures, the bond will be worth $15,000. It is exactly 22 y
Ksju [112]

Answer:

The answer is 3.8%

Explanation:

Solution

Bond purchased at price =$2100)

Maturity rate in  30 years worth =$15,000

Sale of the bond = $11,100

Now we find out what  annual rate of return will you earn from today

Now

present value =$11,100

Future value = $15,000

Bond Life = 8 years (30-22)

The annual rate of return =[(FV/PV)^(1/n) -1]

= (15000/111000^(1/8) -1

=1.351351^ (1/8) -1

= 3.8%

Therefore the annual; rate of return you will earn from today is 3.8%

7 0
3 years ago
How can you determine your net worth?
Mamont248 [21]

Answer:

How much money do you make in 1 year that is your net worth

Explanation:

8 0
3 years ago
Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $2
bearhunter [10]

Answer: Accounting profit = $35000, Economic profit = $13000

Explanation:

Accounting profit = Revenue - Explicit cost

Accounting profit = Revenue - Cost of Help - Rent - Cost of materials

Accounting profit = $72000 - $12000 - $5000 - $20000

Accounting profit = $35000

Economic profit = Revenue - Explicit cost - Implicit Cost

Economic profit = Revenue - Cost of Help - Rent - Cost of materials - Renting equipment - working for competitors - talent

Economic profit = $72000 - $12000 - $5000 - $20000 - $4000 - $15000 - $3000

Economic profit = $13000

5 0
4 years ago
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