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Mkey [24]
3 years ago
8

On December 31, 2006, Frye Co. has $2,000,000 of short-term notes payable due on February 14, 2007. On February 2, 2007, Frye is

sued a three-year notes to borrow $1,500,000 from County Bank and used $200,000 additional cash to liquidate $1,700,000 of the short-term notes payable.
The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2006 balance sheet which is issued on March 5, 2007, is $___.
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer:

The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is $500,000

Explanation:

The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is computed as:

Amount of short term notes payable = Short term notes payable due on Feb 14 - Borrowed from County Bank

where

Short term notes payable due on Feb 14 is $2,000,000

Borrowed from County Bank is $1,500,000

Putting the values above:

Amount of short term notes payable  =  $2,000,000 - $1,500,000

Amount of short term notes payable = $500,000

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Which is a helpful resource for you during the process of buying a home? A. Realtors B. Local programs C. Government programs D.
Klio2033 [76]

Answer:

A. Realtors

Explanation:

A realtor is a professional who helps clients buy and sell properties.  Realtors are registered by the National Association of Realtors (NAR) and licensed to practice by their local authorities.

Realtors work for real estate companies. They may be real estate agents, salespeople, residential and commercial real estate brokers, property managers, or appraisers. Since they are recognized by law, and their work revolves around properties, realtors stand in a better position to assist someone buying a house.

3 0
2 years ago
Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of re
ddd [48]

Expected rate of return is defined as the amount of money an individual gets on investment.

<h3>What is expected return?</h3>

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

Therefore, expected rate of return is defined as the amount of money an individual gets on investment.

Learn more on rate of return below

brainly.com/question/16725994

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4 0
1 year ago
Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in
zlopas [31]

Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

6 0
3 years ago
Producer surplus equals the Group of answer choices amount received by sellers minus the amount paid by buyers. value to buyers
kvv77 [185]

Answer:

Option D amount received by sellers minus the cost to sellers.

Explanation:

The producer surplus is the difference between the amount that the seller actually received and the amount the seller wants to receive.

Producer Surplus = Amount actually received by the seller - Amount the supplier wants to receive

All the remaining options discusses buyer influence which shows that these are totally incorrect and the only option that is correct is option D.

7 0
3 years ago
Kirkland sells season tickets for six events at a price of $48. For the 2013 season, 2,700 season tickets were sold.
alexira [117]

Answer:

a. Assets = Liabilities + Stockholders' Equity = $129,600

b. Debit Unearned ticket revenue for $129,600, and Credit Total revenue for $129,600.

c. It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Explanation:

a. Use the horizontal model to show the effect of the sale of the season tickets. (Enter decreases to account balances with a minus sign.)

Note: See the attached excel file for the horizontal model showing the effect of the sale of the season tickets.

In the attached excel file, the following calculation is done:

Cash = Unearned ticket revenue = Price per season ticket * Number of season tickets sold = $48 * 2,700 = $129,600

Since Stockholders' Equity is equal to zero in the attached excel file, we have:

Assets = Liabilities + Stockholders' Equity = $129,600

b. Use the horizontal model (or write the journal entry) to show the effect of presenting an event.

The journal entry will look as follows:

<u>General Journal                          Debit ($)              Credit ($)     </u>

Unearned ticket revenue            129,600

Total revenue                                                             129,600

<em><u>(To record the effect of presenting an event.)                             </u></em>

c. Where on the balance sheet would the account balance representing funds received for performances not yet presented be classified?

It would be classified as an Unearned ticket revenue under the Current Liabilities on the balance sheet.

Download xlsx
4 0
2 years ago
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