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3 years ago

Keesha Co. borrows $275,000 cash on December 1 of the current year by signing a 180-day, 9%, $275,000 note.

Business

1 answer:

Lyrx [107]3 years ago

6 0

Answer:

(a) The note matures on May 31.

(b) Interest expense recognition for the current year (December only) will be $2,062.5. The amount of interest for the following year of the notes is $12,375 - $2,062.5 = $10,312.5

(c) (a) Journals for the note issuance:

Debit Cash $275,000

Credit Note payable $275,000

(To record the issuance of note)

(c) (b) Journals for accrual of interest on December 31:

Debit Interest expense $2,062.5

Credit Interest payable $2,062.5

(To record the interest payable on note)

(c) (c) Journals for the payment of the note at maturity:

Debit Note payable $275,000

Debit Interest payable $12,375

Credit Cash $287,375

(To record the payment of the note at maturity)

Explanation:

(a) Counting fro, December 1, with 180-day period, the note matures on May 31.

(b) Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest expense on the note is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $275,000 x 9%/12 x 6 months = $12,375.

Monthly interest expense is therefore $12,375 / 6 months = $2,062.5.

Therefore, interest expense recognition for the current year (December only) will be $2,062.5. The amount of interest for the following year of the note is $12,375 - $2,062.5 = $10,312.5

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Define the concept management from functional perspective and clearly explain each of its

Wewaii [24]

Answer:

Management refers to the ability or art of setting objectives, organizing, motivating the people resources, devising systems of measurement, and building human capacity towards the attainment of all organization objectives.

Explanation:

1. Defining Objectives: This flows down from the Founder and Chief Vision Officer. The objectives of an organization is the purpose for which an organization was set up. An example could be to give people living with a disability the opportunity to live inclusively, attaining their highest selves.

2. Organizing: When objectives are taken and put in form of goals, these goals are devolved through to management in the form of achievable tasks who then delegate them to staff. The process of ensuring that each staff know their tasks, who they are accountable to, and work together harmoniously is called Organising.

3. Motivating team: It is not enough to have human resources. It is critical that they be willing to work together, harmoniously and happily. This way, the company enjoys the highest performance possible.

4. Defining Performance Indicators

What is not measured can not be managed. Performance Indicators are systems of measurement that enable the organization to keep track of whether or not the goals are being met and in what measure they are.

5. Building Capacity

Organizations that build leaders the fastest are the ones that win. Building human capacity is the equivalent of upgrading machinery or opting for higher manufacturing technology in the industrial age. People are able to solve problems to the extend that they know how to. The more they know, the better and faster they are at solving such problems. Hence, increasing organizational competency and effectiveness.

Cheers

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3 years ago

Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum price of $3,350,000. The buildin

Volgvan

Answer:

Building = $1,340,000

Land = $1,675,000

Furniture and fixtures = $335,000

Explanation:

This is an example of Basket Asset Purchase whereby a number of assets purchased as one package.

Initial value of each asset is are determined by the Basket Asset Purchase based on their relative fair market value as follows:

Building = $3,350,000 × [$2,560,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.4 = $1,340,000

Land = $3,350,000 × [$3,200,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.5 = $1,675,000

Furniture and fixtures = $3,350,000 × [$640,000 ÷ ($2,560,000 + $3,200,000 + $640,000)] = $3,350,000 × 0.1 = $335,000

Therefore, the initial values of the building, land, and furniture and fixtures would be $1,340,000, $1,675,000, and $335,000 respectively.

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3 years ago

beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The

gregori [183]

Answer:

RA=11.6%

Explanation:

RA=Rf+(Rm-Rf)Ba

RA=?

Rf=5.25%

Rm=12.5%

Ba=.88

RA=5.25%+(12.5%-5.25%).88

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marishachu [46]

Answer:

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What does gdp do for the economy

Inessa [10]

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Hope this helps!

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3 years ago