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
Pachacha [2.7K]
3 years ago
9

On November 1, 20X1, a company signed a $200,000, 12%, six-month note payable with the amount borrowed plus accrued interest due

six months later on May 1, 20X2. What is the amount of interest expense to report in 20X2
Business
1 answer:
ozzi3 years ago
6 0

Answer:

$8,000

Explanation:

The computation of the interest expense is shown below:

= Note payable × interest rate × number of months ÷ total number of months -  Note payable × interest rate × number of months ÷ total number of months

= $200,000 × 12% × 6 months ÷ 12 months - $200,000 × 12% × 2 months ÷ 12 months

= $12,000 - $4,000

= $8,000

The 6 months is calculated from November 1, 20X1 to May 1, 20X2

And, the 2 months is calculated from On November 1, 20X1 to December 31,20X1

We assume the accounts are closed on December 31

Or we can do one thing also

Take the 4 months from Jan 1, 20X2 to May 1, 20X2

=  $200,000 × 12% × 4 months ÷ 12 months

= $8,000

You might be interested in
The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 110,000 wheels annuall
Anna [14]

Answer:

Indifferent Purchase price per wheel = $123,200/110,000 = $1.12

Explanation:

Provided that:

Number of wheels produced: 110,000

Cost for these wheels in case of manufacturing

Direct Material = $22,000

Direct Labor = $33,000

Variable Manufacturing Overhead = $16,500

Fixed Manufacturing Overhead = $59,000

Total Cost = $130,500

Rate of outside supplier = $0.80

Then total cost in case of purchase = Purchase cost + Unavoidable fixed cost - Rent Revenue

= $0.80 \times 110,000 + ($59,000 - $14,000) - $37,700

= $88,000 + $45,000 - $37,700

= $95,300

since net effect of buying the wheels is a gain of $130,500 - $95,300 = $35,200

Thus the wheels shall be bought and not manufactured.

The price at which the buying and manufacturing option will be indifferent shall be:

Purchase Price + Unavoidable Fixed Cost - Rent Revenue = Manufacturing cost

Purchase Price + $45,000 - $37,700 = $130,500

Purchase Price = $123,200

Purchase price per wheel = $123,200/110,000 = $1.12

7 0
3 years ago
Erin was a ski instructor in the winter. once the ski season was over, erin's job no longer existed. so now she is actively look
sp2606 [1]

Answer

Erin can collect unemployment insurance to help pay her bills.

Explanation

Unemployment insurance cover is one where individuals may receive benefits if they lost their jobs faultlessly and satisfy other requirements of course. Those that can not apply for unemployment cover include persons that terminated their employment willingly and self-employed individuals. The government uses taxes obtained from employers to create a fund that cover for unemployment insurance.


8 0
3 years ago
Read 2 more answers
Why attendance is important
Bezzdna [24]
Attendance is important in a job because it shows how dedicated you are to your profession. it means you take your job seriously, and want your boss to notice it, to potentially get a promotion. example of poor attendance: skipping work to get your nails done, this is very immature, as people are counting on you to do your job when you have a shift. not only the customers, but your boss and coworkers as well. if one person is missing the whole ship sinks.
hope this helps!
8 0
3 years ago
Plz help!!
steposvetlana [31]
Its b

Explain:
The reason it’s because the government collects taxes which are considered leakages
8 0
3 years ago
Read 2 more answers
You are working at a practice that has a very busy daily schedule and needs to standardize the times when statements are handled
Ivan

Answer: Cycle Billing

Explanation:

Cycle billing refers to a billing practice where the individual customer is billed on a certain schedule based on the day you started paying or the day the contract kicked in. For instance, your cellular network provider billing you on the same day every month.

This ensures that not all customers are billed on the same day which will reduce the workload at the practice which already has a busy schedule. Rather with customers being billed on different days, the workload decreases.

Also it will then be known for certain which dates one can expect payments as well as when statements will be handled.

7 0
3 years ago
Other questions:
  • A common feature of skiing is waiting in lift lines. Does the existence of lift lines mean that the price is not working to allo
    9·1 answer
  • American shoppers usually do not like it when a store is so cramped that the customers may touch one another while shopping. whe
    14·2 answers
  • Regina has made the same sales presentation twice a day for almost a month. At first, the presentation seemed to flow nicely but
    15·1 answer
  • On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $3,200,000. The bonds pay interest semiannua
    15·1 answer
  • The​ ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock.
    5·1 answer
  • You are hired by the Chair of the Federal Reserve to manage the trading desk at the New York Fed and the Chair tells you that he
    13·1 answer
  • Sometimes speakers eliminate details from their speeches in an attempt to influence audience opinion. This concern relates to wh
    11·1 answer
  • A major factor contributing to the growth in the use of direct marketing IMC efforts is:__________
    9·1 answer
  • What is the most important factor in maximizing the positive effects of a diverse workforce within an organization
    10·1 answer
  • Today, benefit and service offerings add nearly _________ to an organization payroll costs
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!