Answer:
Parke Company
The amount of interest expense should be included in Parke's 20X4 income statement is:
= $30,600.
Explanation:
a) Data and Calculations:
3-year Non-interest bearing note payable = $360,000
Imputed interest rate for this type of loan = 12%
Present value of the loan = $255,000
Interest expense as of December 31, 20X4 = $30,600 ($255,000 * 12%)
b) The interest expense is based on the present value of the loan and not on the future value of the note payable. Therefore, the interest expense for each of the three years will not be the same amount but will continue to increase as the present value changes from one year to the next.
When marginal profit turns negative, producing more output will decrease total profits. Total profit is maximized where marginal revenue equals marginal cost. In this example, maximum profit occurs at 4 units of output.
<span>European Union.Council of Europe.<span>Organisation of American States (OAS)</span></span>
Answer:
The Journal entries with their narration is given below:-
Explanation:
The Journal entry is shown below:-
1. Account receivables Dr, $22,200
To Sales $22,200
(Being sales is recorded)
2. Cash Dr, $6,048
Service charge expense Dr, $252
($6,300 × 4%)
To Sales $6,300
(Being credit card sales is recorded)
3. Cash Dr, $11,600
To accounts receivable $11,600
(Being cash is recorded)
4. Accounts receivable Dr, $364
($22,000 - $11,600) × 3.5%
To Interest revenue $364
(Being finance charges is recorded)