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myrzilka [38]
3 years ago
7

OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the

airline industry. Assume that on July 1 the company issues a one-year note for the amount of $6 million. Interest is payable at maturity.
Required:

Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:

Interest Rate Fiscal Year-End
11% December 31
9% September 30
10% October 31
7% January 31
Business
1 answer:
Sindrei [870]3 years ago
3 0

Answer:

a. Interest expense to be recorded at December 31 at 11% is $330000.

b. Interest expense to be recorded at September 30 at 9% is $135000.

c. Interest expense to be recorded at October 31 at 10% is $200000.

d. Interest expense to be recorded at January 31 at 7% is $245000.

Explanation:

a.

The year end adjusting entry will be made on the accrual basis and will match that period's expenses with revenues. The note will pay interest at maturity however it will continue to accrue interest throughout its outstanding period evenly.

Considering year end to be on December 31 and 11% interest on note, the interest expense that would be recorded in year end adjusting entry will be,

Interest expense = 6000000 * 0.11 * 6/12 = $330000

b.

Considering year end to be on September 30 and 9% interest on note, the interest expense that would be recorded in year end adjusting entry will be,

Interest expense = 6000000 * 0.09 * 3/12 = $135000

c.

Considering year end to be on October 31 and 10% interest on note, the interest expense that would be recorded in year end adjusting entry will be,

Interest expense = 6000000 * 0.10 * 4/12 = $200000

d.

Considering year end to be on January 31 and 7% interest on note, the interest expense that would be recorded in year end adjusting entry will be,

Interest expense = 6000000 * 0.07 * 7/12 = $245000

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Answer:

How is providing customer information to a law firm different than providing email addresses and symptoms to a pharmaceutical company?

Both are live saving professions, every detailed of their clients must be well documented in order to get the best services as far as life is concerned. A law firm must be sure of every details submitted in order to tackle anything that might affect such clients in court of law while a client must provide a detailed information as regards his/her health in order to get the right prescription for health service

Explanation:

4 0
3 years ago
By lowering production costs, subsidies help foreign competitors gain export markets. True or False
Luden [163]

Answer:

False

Explanation:

Whenever, there will be reduced production costs, due to any reason in the economy, then the goods will be cheaper and accordingly the sale will be in abundance assuming other factors remain constant.

Thus, due to subsidies the cost to producers will be less and then exporters will not be able to get more share as domestic goods will cost cheaper.

Thus, there will not be any gain to foreign competitors in our domestic markets, as they will not get any share extra rather they will loose as a foreign competitor. In fact goods which are exported will also cost low, and therefore, will gain new customers.

Therefore, above stated statement is false.

5 0
3 years ago
Gullett corporation had $44,000 of raw materials on hand on november 1. during the month, the corporation purchased an additiona
Zina [86]

Answer:

Dr Raw materials $93,000

Cr Accounts payable $93,000

Explanation:

Based on the information given we were told that during the month, the corporation had to purchased an additional raw materials of the amount of $93,000 which means that the journal entry to record the purchase of raw materials would include a:

Dr Raw materials $93,000

Cr Accounts payable $93,000

(To record purchase of raw materials)

4 0
3 years ago
Given the acquisition cost of product Z is $43, the net realizable value for product Z is $37, the normal profit for product Z i
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Answer:

proper per unit inventory value for product Z applying LCM is $38

Explanation:

given data

cost of product Z  = $43

net realizable value product Z = $37

normal profit for product Z = $2

market value product Z = $38

solution

first we get here difference between Net realizable value and  profit that is

Net realizable value - normal profit

= $37  - $2

= $35

so here now we get proper per unit inventory is

proper per unit inventory = lower of cost or market value

so here market value product Z is lower so

proper per unit inventory value for product Z applying LCM is $38

7 0
3 years ago
Which of the following best describes what investment is?
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The most likely answer is option 3
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