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andriy [413]
3 years ago
11

On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note requir

e Stratton to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:
Business
1 answer:
makvit [3.9K]3 years ago
3 0

Answer:

<em>Computation of the interest expense using the equation as shown below: </em>

Interest expense for year 1 = Notes payable * Interest rate

= $100,000 * 10%

= $7,000

​

Notes payable reduction in Year 1 = $14,238 - $7,000

= $7,238

                    General journal entry

Item                           Debit         Credit

<em>Notes payable          $7,745</em>

Interest expense       $6,493

Cash                                            $14,238

Workings

Interest expense = ($100,000 - $7,238) * 7%

= $92,762 * 7%

=$6,493

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3 years ago
Powers Rental Service had the following items that require adjustment at year-end.
kirill [66]

Answer:

a. Accounts Receivable (Dr.)           $9,880

   Sales (Cr.)                                      $9,880

If not adjusted it will have impact on revenue in Income statement being understated and Receivables being understated in the balance sheet by the amount of $9,800.

b. Notes Receivable (Dr.)                 $650

   Interest Income (Cr.)                     $650

If not adjusted this will have effect on Income statement in the incomes being understated and ultimately decrease in net income and in balance sheet it will understate the receivables (assets) by the amount of $650.

Explanation:

<u>1. Adjusting Entries </u>

a. Accounts Receivable (Dr.)           $9,880

   Sales (Cr.)                                      $9,880

b. Notes Receivable (Dr.)                 $650

   Interest Income (Cr.)                     $650

2. If a. is not adjusted it will result in understatement of accounts receivables ultimate effect on assets side of the balance sheet and sales (revenue) will also be understated and will have ultimate effect on income statement by the amount of $9,880.

If b. is not adjusted this will have effect on income statement in a decrease in net income and in the balance sheet receivables will be declined by the amount of $650 on the assets side.

7 0
3 years ago
financial control is a process through which a firm periodically compares its budget to which of the following? (select all that
RideAnS [48]

Financial control is the process through which a firm periodically compares its budget to :

  • revenues
  • expenses
  • costs
<h3>What is meant by financial control?</h3>

The methods, procedures, and techniques used by an organization to monitor and manage the use, allocation, and direction of its financial resources are known as financial controls. Any organization's resource management and operational effectiveness are fundamentally dependent on its financial controls.

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Read more on financial controls here: brainly.com/question/26398073

#SPJ1

Financial control is a process through which a firm periodically compares its budget to which of the following? (Select all that apply)

Multiple select question.

(A) stock price

(B) revenues

(C) expenses

(D) market share

(E) costs

8 0
1 year ago
If someone dies without a will, who handles the distribution of the person’s estate?
Kruka [31]
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4 0
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kifflom [539]

Answer:

$71,000

Explanation:

The computation of operating income is shown below:-

Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)

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= $71,000

Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.

8 0
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