1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 years ago
11

Entries for notes payable Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a 360

-day year.
a. If the note is issued with a 45-day term, journalize the entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. If the note is issued with a 90-day term, journalize the entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
Business
1 answer:
Shalnov [3]3 years ago
8 0

Answer:

The Journal entries are as follows:

(a)

(i) Account payable A/c Dr. $100,000

         To Notes payable                       $100,000

(To record issue notes payable)

(ii) Notes payable A/c Dr. $100,000

Interest expense A/c Dr. $875

       To cash A/c                                $100,875

(To record payment of notes)

Workings:

Interest expense = 100,000 × 7% × (45/360)

                            = $875

(b)

(i) Account payable A/c Dr. $100,000

         To Notes payable                       $100,000

(To record issue notes payable)

(ii) Notes payable A/c Dr. $100,000

Interest expense A/c Dr. $1,750

       To cash A/c                               $101,750

(To record payment of notes)

Workings:

Interest expense = 100,000 × 7% × (90/360)

                            = $1,750

You might be interested in
An organization that has all its people in one location is typically ________ than an organization that is dispersed around the
Vera_Pavlovna [14]

Answer:

less spatially complex is the answer.

7 0
9 months ago
Oriole Corp. is a fast-growing company whose management expects it to grow at a rate of 24 percent over the next two years and t
Salsk061 [2.6K]

Answer:

1.What is the dividend for the 1st year?

$2.67

2.What is the dividend for the 2nd year?

$3.31

3.What is the dividend for the 3rd year?

$3.90

4.What is the dividend for the 4th year?

$4.60

5.What is the dividend for the 5th year?

$5.43

6.Compute the present value of these dividends if the required rate of return is 14 percent.

1. $2.34

2. $2.54

3. $2.63

4. $2.73

5. $2.82

Explanation:

Last Dividend paid = $2.15

Growth rate:

First two years = 24%

Following three years = 18%

FV of Dividend = PV ( 1 + g )^n

1.

Dividend for the 1st year = $2.15 x ( 1 + 24% )^1 = $2.15 x ( 1 + 0.24 )^1 = $2.15 x ( 1.24 )^1 = $2.67

2.

Dividend for the 2nd year = $2.15 x ( 1 + 24% )^2 = $2.15 x ( 1 + 0.24 )^2 = $2.15 x ( 1.24 )^2 = $3.31

3.

Dividend for the 3rd year = $3.31 x ( 1 + 18% )^1 = $3.31 x ( 1 + 0.18 )^1 = $3.31 x ( 1.18 )^1 = $3.90

4.

Dividend for the 4th year = $3.31 x ( 1 + 18% )^2 = $3.31 x ( 1 + 0.18 )^2 = $3.31 x ( 1.18 )^2 = $4.60

5.

Dividend for the 5th year = $3.31 x ( 1 + 18% )^3 = $3.31 x ( 1 + 0.18 )^3 = $3.31 x ( 1.18 )^3 = $5.43

6.The present value of these dividends

Present value of dividends can be calculated by following formula:

PV  = FV / ( 1 + r )^n

FV = Dividend for the year

r = rate of return = 14%

n = number of years

1.      PV = $2.98 / ( 1 + 0.14 )^1 = $2.98 / ( 1.14 )^1 = $2.98 / 1.14 = $2.34

2.      PV = $3.31 / ( 1 + 0.14 )^2 = $3.31 / ( 1.14 )^2 = $3.31 / 1.2996 = $2.54

3.      PV = $3.90 / ( 1 + 0.14 )^3 = $3.90 / ( 1.14 )^3 = $3.90 / 1.481544 = $2.63

4.      PV = $4.60 / ( 1 + 0.14 )^4 = $4.60 / ( 1.14 )^4 = $4.60 / 1.68896 = $2.73

5.      PV = $5.43 / ( 1 + 0.14 )^5 = $5.43 / ( 1.14 )^5 = $5.43 / 1.925416 = $2.82

5 0
3 years ago
Cynthia always buys whichever brand of paper towels is on sale, even if it is not the highest quality towel. her paper towel buy
Ann [662]

Single feature model

In this case, the single feature that Cynthia cares about is price. The single feature model works well for simple decisions, but most purchases require more thought. For example, buying a house based solely on price would be a terrible idea because it might be in a bad neighborhood or terrible condition.

6 0
3 years ago
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bon
Artist 52 [7]

Answer: Campbell will owe $115,858.25 in federal income tax this year computed as follows:

$115,858.25= $45,353.75+ 33% x ($400,000 - $186,350)).

Campbell's average tax rate is 28.96 percent.

Average Tax Rate = TotalTax / TaxableIncome = $115,858.25 / $400,000 = 28.96

Campbell's effective tax rate is 28.82 percent.

Effective tax rate = TotalTax / TotalIncome = $115,858.25 / ($400,000 + $2000) = 28.82

Campbell is currently in the 33 percent tax rate bracket. Her marginal tax rate on deductions up to $213,650 will be 33 percent. However, her marginal tax rate on the next $5,100 of income will be 33%, and income earned over $405,100 will be 35 percent. Income earned in excess of $406,750 will be taxed at 39.6%.

3 0
2 years ago
Why is it important to YOU to save money ? ILL MARK BRAINLIST * How and why to save money *
dangina [55]

First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom. I would save money by keeping it secure in a special place like a wallet.

7 0
2 years ago
Read 2 more answers
Other questions:
  • In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several ch
    6·1 answer
  • On December 31, 2020, Vitners Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferre
    14·1 answer
  • Cullumber Company had these transactions during the current period:
    8·1 answer
  • Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $33,000 for 1,100 shares of $10 par common stoc
    10·1 answer
  • WJ Group Inc., a large multinational conglomerate, had begun to experience declining revenues over the years. The top management
    10·1 answer
  • "The risk-free rate of return is 4 percent, and the market return is 10 percent. The betas of Stocks A, B, C, D, and E are 0.85,
    13·1 answer
  • When the Fed increases the reserve requirement, banks: must increase the dollar volume of loans they make to customers. must pay
    14·1 answer
  • A util is an artificial construct used as a means of measuring the A. costs of producing a good B. price of a good C. satisfacti
    11·1 answer
  • Ann is interested in purchasing Ted's factory. Since Ann is a poor negotiator, she hires Mary to negotiate the purchase price. I
    14·2 answers
  • The run-time stack:_______
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!