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
kodGreya [7K]
3 years ago
8

On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,

which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $450,000 to its supplier using a 12-month, 12% note.Required:The loan of $450,000 and acceptance of the note receivable on April 1, 2021.The adjustment for accrued interest on December 31, 2021.Cash collection of the note and interest on April 1, 2022.
Business
1 answer:
Vlad [161]3 years ago
6 0

Answer:

Explanation:

The journal entries are shown below:

1.  Notes receivable A/c Dr $450,000

          To Cash A/c                               $450,000

(Being the notes receivable acceptance is recorded)

2. Interest receivable A/c Dr $40,500

      To Interest revenue                       $40,500

(Being the interest is collected)

Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (9 months ÷ 12 months)

= $40,500

The 3 months is calculated from April 1 to December 31

3.  Cash A/c Dr $504,000

             To Notes receivable A/c $450,000

             To  Interest receivable A/c $40,500

             To Interest revenue A/c      $13,500

(Being cash collected recorded)

Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (3 months ÷ 12 months)

= $13,500

The 3 months is calculated from December 31 to April 1

You might be interested in
Floating rate bonds are most likely to be popular with investors when it is anticipated that:_________.
fiasKO [112]

Answer:

i think d is the correct answer

6 0
3 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
tigry1 [53]

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

8 0
3 years ago
Which of the following most accurately describes one of the powers of stockholders? A. Stockholders manage the daily business of
Tems11 [23]

Answer:

C. Stockholders are given discounts on the company's products.

Explanation:

The powers of stockholders are to be given discounts on the company's products.

7 0
3 years ago
Read 2 more answers
In what year was the EEOC established<br> O<br> A. 1970<br> B. 1930<br> C. 2007<br> D. 1965
Maslowich

Answer:

D. 1965

Explanation:

The Civil Rights Act of 1964 is a civil rights and labor law in the United States of America that prohibits discrimination in employment, segregation in schools, and enforces the constitutional voting rights of the citizens.

The Civil Rights Act of 1964 was enacted by the 88th US Congress and signed into law on the 2nd of July, 1964 by President Lyndon B. Johnson.

The Equal Employment Opportunity Commission (EEOC) is a federal agency that was established by US Congress on the 2nd of July, 1965 based on the Civil Rights Act of 1964 so as to uphold and enforce all civil rights law against workplace discrimination by the employers or employees in the United States of America.

Equal Employment Opportunity Commission (EEOC) guidelines asserts that employers of labor wouldn't be held liable for national origin discrimination after implementing an "English-only" rule, if the employer can show that it is necessary for the following;

I. To communicate with customers who can speak English only.

II. To efficiently promote cooperative work assignments among teams (employees).

III. To enhance or facilitate safety during an emergency.

3 0
2 years ago
Do all states pay the same unemployment compensation and for the same length of time?
kondaur [170]

Answer:

Explanation:

Ultimately, the onus is on the state government to balance the checkbook, so the state has to decide the benefits maximum amount, duration, and eligibility to receive the benefits. For this reason, you notice that unemployment benefits largely vary by state. Some states like Massachusetts could pay as high as $1,220 depending on the eligibility criteria.

4 0
2 years ago
Other questions:
  • Classical economics played an important role in helping the United States establish _________.
    6·1 answer
  • One test of evidence is "does the evidence come from unbiased sources?"
    6·1 answer
  • A __________ is a sample of consumers or stores from which researchers take a series of measurements. representative group jury
    8·1 answer
  • A payments system based on money is A. more efficient than a barter economy because fewer prices are needed to establish relativ
    11·1 answer
  • Vilas Company is considering a capital investment of $190,900 in additional production facilities. The new machinery is expected
    8·1 answer
  • 4. The ____ condition requires that only one of the selected criteria be true for a record to be displayed.
    10·1 answer
  • If the efficient market hypothesis is true, price changes are independent and biased. Group of answer choices
    12·1 answer
  • Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize and explain your findings
    15·1 answer
  • suppose the absolute values of the intercept and slope of the demand function are approximated to be 10 and 3 respectively. if t
    11·1 answer
  • Use the data given in P13-5 for Prince Company.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!