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goblinko [34]
3 years ago
8

Wisconsin Bank lends Local Furniture Company $110,000 on November 1. Local Furniture Company signs a $110,000, 6%, 4-month note.

The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is:
A.) debit interest payable and credit cash for $1,200
b.) debit interest expense and credit payable for $1,200
c.)Debit interest expense and credit cash for $1,200
d.)Debit interest payable and credit interest expense for $1,200
Business
1 answer:
tatuchka [14]3 years ago
4 0

Answer:

debit interest expense and credit payable for $1,100

Explanation:

The journal entry is shown below:

Interest expense $1,100

             To Interest payable $1,100

(Being the interest expense is recorded)

The computation is shown below:

= $110,000 × 6% × 2 months ÷ 12 months

= $1,100

The 2 months is calculated from November 1 to December 31

This is the answer but the same is not provided in the given options

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HearIT, Inc., sells headphones and other listening devices. HearIT buys the goods from manufacturers and then resells them direc
miskamm [114]

Answer:

A warranty of no liens

Explanation:

HearIT has violated the warranty of no liens

Warranty: This can be defined as the assurance usually given by the seller of the existence of a fact on which the buyer can rely. Giving warranty is the duty of the seller, so buyers can sue the sellers in case of any breach in the agreement. instance, we have express warranty, warranty of title, implied warranty.

1) Warranty of Title

a) No Liens: Sellers usually give assurance to the customers that they are selling goods free from debt.

As in the case of HearIT, he has violated this contract by selling goods to Judy that are later repossesed by the manufacturer because the goods were bought on credit and HearIT failed to pay the manufacturer.

b) Good Title:This is the assurance given by the seller that the goods are not stolen goods.

2) No Infringements: It us a warranty given by the sellers to the buyers that their commodities are free from all kinds of infringement like patent right, copyright.

Except where disclaimed, a seller warrants that the goods delivered are free from any copyright, trademark, or patent claims by a third party.

Except where disclaimed, sellers warrant that they have good and valid title to the goods being sold and that they have the power to rightfully transfer title to the buyer. In other words, the goods aren’t stolen.

Except disclaimed, sellers warrant that the goods they are selling are free of any liens -- that is, any encumbrance on the goods or other property to satisfy a debt or protect a claim for payment of a debt (e.g., a security interest on personal property or a mortgage on real property).

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6 0
4 years ago
A college raises its annual tuition by​ 25%, and its student enrollment falls by​ 3.5%. Compute the price elasticity of demand.
Diano4ka-milaya [45]

Answer:

Elasticity does not have a unit because it is a pure number

Demand is Elastic

TR decrease due to the demand been elastic. a rise in tuition fee causes the total revenue to decrease

Explanation:

Tuition fees increment  by 25%

Student enrollment decreases by 3.5%

Price elasticity of demand=%change in quantity demanded / %change in price

                                            =  -3.5/ 2.5

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6 0
3 years ago
Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in in
iogann1982 [59]
<span>The answer to your question is Annual Compounding</span>
4 0
3 years ago
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6 0
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The following information relates to the pension plan for the employees of Turner Co.: 1/1/20 12/31/20 12/31/21 Projected benefi
Reptile [31]

Answer:

The amount of AOCI (net gain) amortized in 2021 is $26,250

Explanation:

In order to calculate the calculate the amount of AOCI (net gain) amortized in 2021 we would have to use the following formula:

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Therefore, AOCI (net gain) amortized in 2021=($1,512,000-$1,092,000)/16

AOCI (net gain) amortized in 2021=$26,250

5 0
3 years ago
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