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MrRa [10]
3 years ago
11

On April 1, 2020, Clare Barry received a 5%, $600,000 note from John Edwards, a customer. The note is due on March 31, 2021. Cla

re Barry has a December 31st year-end. Clare Barry's entry on March 31, 2021 to record the payment received would include a credit to interest revenue of
Business
2 answers:
ivanzaharov [21]3 years ago
4 0

Answer:

The interest revenue will be credited by $7500 on March 31, 2021.

Explanation:

The 5% interest on $600000 notes is for the whole year. The amount of interest for whole year will be = 600000 * 0.05 = $30000

The important thing to note here is that the year end for Clare Barry is on 21 December which means that on 31st December 2020, we will make adjusting entries and for such a note, an adjusting entry will be passed as,

31 Dec 2020  Interest receivable     22500 Dr

                           Interest Revenue          22500 Cr

This is because the interest of 22500 from April 2020 to December 2020 relates to the period of 2020 and using accrual principle, we will record this as revenue in 2020.

Thus, on 31 March 2021 we will record the interest revenue that pertains to the period of January 2021 to March 2021 which comes out to be,

Interest Revenue = 30000 * 3/12 = $7500

Serjik [45]3 years ago
3 0

Answer:

$7,500

Explanation:

This can be calculated by following the simple steps below:

Total one-year interest revenue = $600,000 × 5% = $30,000

Monthly interest revenue = $30,000 ÷ 12 = $2,500

Number of relevant months in 2021 = 3 months (i.e. January 1, 2021 to March 31, 2021)

Credit to interest revenue in 2021 = $2,500 × 3  = $7,500

Therefore, Clare Barry's entry on March 31, 2021 to record the payment received would include a credit to interest revenue of $7,500.

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As of December 31, 20X14, Eliot Corp. has net income per books of $100,000, which includes municipal bond interest of $4,000, a
muminat

Answer:

Option (e) is correct.

Explanation:

Taxable Income:

= Net income per book - municipal bond interest + deduction for business meals + deduction for a net capital loss + deduction for federal income taxes

= $100,000 - $4,000 + 50% of $5,000 + $5,000 + $22,000

= $125,500

Eliot Corp.'s current earnings and profits (Current E&P) for 2014:

= Taxable Income + municipal bond interest - deduction for federal income taxes - deduction for a net capital loss

= $125,500 + $4,000 - $22,000 - $5,000

= $102,500

5 0
3 years ago
A strategy that is preferred by an individual regardless of an opponent's decision is called:
djverab [1.8K]
<span>A strategy that is preferred by an individual regardless of an opponent's decision is called: dominant strategy. regardless of what any other players do, the strategy earns a player a larger payoff than any other. If one strategy is dominant, than all others are dominated.</span>
5 0
3 years ago
Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from o
Svet_ta [14]

Answer:

Imports

Explanation:

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that imports. Dominique imports products from different countries and make them available to its customers on their shelves. They have to buy those products from different sources. For this purpose, they have to put large amount of efforts in order to contact the foreign vendors and get their product imported in their country and ultimately at their store by spending costs and efforts. By importing products from other country, they can provide large product assortment to their customers.

5 0
4 years ago
What were joint-stock companies and monopoly companies, and how did they contribute to increased trade and exploration?
Irina-Kira [14]

Answer:

Nowadays, a joint stock company is simply a corporation whose stockholders can buy or sell the company's stocks. But 4 centuries ago, joint stock companies were very different.

Joint stock companies were used by the British Empire to set colonies around the world, e.g. the Virginia Company was chartered rights to establish and exploit colonies in British territories, which are now the US.

A joint stock company was named that way because stocks of the company were sold to rich people in England that were willing to risk money in the colonies. E.g. Jameston was founded and basically owned by the Virginia Company. Joint stock companies were vital for the colonization processes of the British Empire.

The King of England could also establish chartered companies which basically had a monopoly over the trade of certain areas, e.g. the East India Company was probably one of the most famous of them and the most powerful and wealthy.

Some chartered companies were even responsible for paying the salaries and expenses of the British government officials in foreign countries. The East India Company basically ruled over all India and had its own private army.

5 0
4 years ago
Which of the following statements is CORRECT? Assume a company's target capital structure is 50% debt and 50% common equity.a. T
Bond [772]

The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt' .

Option-c

<u>Explanation: </u>

Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.

This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.

6 0
3 years ago
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