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horrorfan [7]
3 years ago
7

On January 1, Year 1, Barrett, Inc., purchased equipment and signed a note agreeing to pay $100,000 on December 31, Year 3. The

market interest rate applicable to the note was determined to be 10%. What is the amount that will be credited to Note Payable in the journal entry dated January 1, Year 1?
Business
1 answer:
Afina-wow [57]3 years ago
3 0

Answer:

$75,131

Explanation:

The computation of the amount of note payable credited is shown below:

Notes payable is

= Agreed amount to pay × present value factor at 10% for 3 years

= $100,000 ×  0.75131

= $75,131

By multiplying the agreed amount to pay with the present value factor at 10% for 3 years we can get the amount credited to the note payable

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Loster Company reported a net loss of $17,017 for the year ended December 31. During the year, accounts receivable decreased by
Goshia [24]

Answer:

The answer is $5,314

Explanation:

Net loss ($17,017)

Add back:

Depreciation expense. $5,495

($11,522)

Changes in working capital:

Decrease accounts receivable $7,476

Increase Inventory. ($5,997)

Increase accounts payable. $15,357

Net cash provided by operating activities. $5,314

5 0
3 years ago
2. Describe three things that you think are important for a company to include in its personnel policies. (1-3 sentences. 1.5 po
gogolik [260]

<u>Explanation:</u>

1.One of the important personnel policies are work schedule that includes the mandatory full time working hours in office, break timings, paid holidays etc. Policies have to be framed for sick leaves and family illness.

2.Performance assessment policies which should state the minimum performance requirements from the employees. This would be helpful to fire employees with very poor performances. This also helps in giving promotion and increment to employees.

3.Standard on-boarding policies have to be adopted by the employees to make sure the documentation of new hires are done correctly. The background verification and other personal details of the recruits should be done correctly.

4 0
3 years ago
Below are several amounts reported at the end of the year. Currency located at the company $ 1,050 Supplies 3,200 Short-term inv
blondinia [14]

Answer: $18,460

Explanation:

Amounts that will go towards the cash account at the end of the year include all actual cash, undeposited checks, bank balances and short term investments.

The Total amount of cash to report will therefore be;

= Currency located at the company + Short-term investments that mature within three months + Balance in savings account + Checks received from customers but not yet deposited + Coins located at the company + Balance in checking account

= 1,050+ 1,950 + 8,500 + 650 + 110 + 6,200

= $18,460

5 0
3 years ago
Jack’s Snow Removal Company received a cash advance of $14,700 on December 1, Year 1 to provide services during the months of De
Ipatiy [6.2K]

Answer:

d. increase equity by $4,900

Explanation:

Jack Snow received $14,700 on December 1 for services to be rendered in December, January and February. It will not be recorded as income because it hasn't been earned.

Adjusting entries will be passed at the end of each month to recognise amount earned.

Since it is for 3 months, monthly amount earned = 14,700/3= $4,900

At December 31 Retained earnings will be credited for $4,900.

Retained earnings is part of owner's equity.

So equity will increase by $4,900

8 0
3 years ago
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
natita [175]

Answer:

FINISHING TOUCHES

Balance Sheet  December 31, 2015

(Stockholders’ Equity Section)

Stockholders’ equity:

Common stock  = $100,000

Preferred stock  =  $30,000

Treasury stock  = -$5,500

Additional paid-in capital  = $3,216,000

Total paid-in capital  = $3,340,500

Retained earnings  = $63,100

(Preferred stock  = -$,30,000)

Total stockholders’ equity = $3,373,600

Explanation:

a) 100,000 Common stock issued at $35 per share with $1 par is valued at $1 in the Common Stock section while the difference $34 $(35 - 1) is taken to the Additional paid-in capital at 100,000 x $34.

b) 3,000 Preferred Stock  issued at $11 per share with $10 par is valued at $10 in the Preferred Stock while the difference $1 $(11 - 10) is taken to the Additional paid-in capital at 3,000 x $1.

c) Treasury stock is the repurchase of stock by the company.  It is a contra account to the equity accounts.  It is therefore deducted from the equity section.  Two methods exist for its treatment: the cost method and the par value treatment.  We used the par value treatment.

This involves stating the par value movements in the Treasury stock while  the additional loss or additional gain is taken to the Additional Paid-in Capital section.

On the other hand, the cost method treats the cost of repurchase in the Treasury stock.

d) Additional Paid-in Capital (APIC) account records the above par value received.  It is also where the above par value is deducted for Treasury Stock.

e) Retained Earnings represent the net income after paying dividends to common stockholders and preferred stockholders.

f) To get the total stockholders' equity, the preferred stock is deducted.  Holders of preferred stock are not equity holders.

7 0
3 years ago
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