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4 years ago

The matching concept states that expenses incurred to produce particular revenues should be matched with those revenues.

Business

1 answer:

slega [8]4 years ago

4 0

False. The revenues usually contemplate the profit added to the expenses or costs, therefore, they can't match.

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4 years ago

Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua

ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9% × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

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3 years ago

Sandusky Company borrowed $28,000 from the Lakeside Bank by issuing a 10% three-year installment note. Sandusky agreed to repay

Marrrta [24]

Answer:

the amount of the interest expense associated with the second payment would be $1,954

Explanation:

According to the given data we have the following:

Amount borrowed= $28,000.00

10% interest=$28,000×0.10=$2,800

Therefore, Total outstanding at end of year 1=$28,000+$2,800

Total outstanding at end of year 1=$30,800

Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,259.21, therefore

Net balance at end of year 1= $30,800-$11,259.21

Net balance at end of year 1=$19,540.79

Hence, To calculate the amount of the interest expense associated with the second payment we would have to make the following calculation:

amount of the interest expense associated with the second payment= $19,540.79×10%=$1,954

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4 years ago

The United States government sometimes has to interfere with the economy. Why would the government initiate an antitrust suit ag

Ilya [14]

Answer:

Explanation:

8 0

3 years ago

What is the largest source of revenue in california?

MArishka [77]

The three largest sources of revenue are personal income taxes, sales and use taxes, and corporate income taxes (in that order).

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4 years ago