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larisa [96]
3 years ago
14

Flipco signed a 10​-year note payable on January​ 1, 2018​, of $ 800, 000. The note requires annual principal payments each Dece

mber 31 of $ 80, 000 plus interest at 5​%. The entry to record the annual payment on December​ 31, 2019​, includes:___________
A. a debit to Interest Expense for $ 36, 000.
B. a debit to Interest Expense for $ 40, 000.
C. a credit to Notes Payable for $ 80, 000.
D. a credit to Cash of $ 120, 000.
Business
1 answer:
kirill115 [55]3 years ago
7 0

Answer:

A. a debit to Interest Expense for $ 36, 000

Explanation:

Based on the information given we were told that Flipco has note payable on January​ 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5​% interest. This means that the Journal entry to record the transaction on December​ 31, 2019​ will includes a Debit to interest expense for $36,000 calculated as :

Interest expense= $800,000-$80,000

Interest expense=( $720,000* 5%* 12/12)

Interest expense =$36,000

Therefore the Journal entry to record the annual payment on December​ 31, 2019​ will includes :

A Debit to interest expense for $36,000

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Total payroll of Walnut Co. was $1,900,000, of which $330,000 represented amounts paid in excess of $118,500 to certain employee
babymother [125]

Answer:

A.

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Cr FICA Taxes Payable 124,890

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B.

Dr Payroll Tax Expense 158,535

Cr FICA Taxes Payable 150,135

Cr FUTA Taxes Payable 3,360

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Explanation:

Walnut Co

A.

Dr Salaries and Wages Expense $1,900,000,

Cr Withholding Taxes Payable $461,000,

Cr FICA Taxes Payable 124,890

Cr Cash 1,314,110

(1,900,000 – $330,000) × 7.65%+ ($330,000 × 1.45%)

=1,570,000×0.0765+4,785

=120,105+4,785

B.

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($1900,000 × 7.65%) + ($330,000 × 1.45%)

(145,350+4,785)

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($1,900,000 – $1,480,000) × .8%

420,000×.8%

Cr SUTA Taxes Payable 5,040

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In business, communication problems can emerge due to a difference in language that prevents the business from communicating appropriately its purpose, name, slogan, and from advertising its products. This mainly occurs if the translation does not reflect the original meaning or there are cultural features that create a barrier.

This situation occurs in "The name of the product when translated into Greek, has an unintentional meaning" because due to the lack of experience of the manager in Greece and the differences in language, she does not know how to communicate in Greek the name of the company, which creates a communicative barrier as Greek customers will not understanding the real meaning of the company.

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                       Unrealized holding gain                             $32,000

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Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value

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