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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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Balance Sheet
Nataly [62]

Solution :

a). Total debt = notes payable + long term debt

                      = 145,000 + 750,000

                     = $ 895,000

b). Total liabilities and equity = total assets

                                                = 2,900,000

c). Current assets = total assets - net plant and equipment

                             = 2,900,000 - 2,600,000

                              =$ 300,000

d). Total current liabilities = total liabilities and equity - total common equity - long term debt

                           = 2,900,000 - 1,550,000 - 750,000

                           = $ 600,000

e). Accounts payable and accruals = total current liabilities - notes payable  

                                                          = 600,000 - 145,000

                                                          = 455,000

f). Net working capital = current asset - current liabilities

                                    = 300,000 - 600,000

                                   = - $300,000

g). Net operating working capital = current assets - accounts payable and accruals

                                  = 300,000 - 455,000

                                 = - $ 155,000

h). The difference between f) and g). represents the balance of notes payable.  

5 0
3 years ago
Match each feature with the savings account type.
Marysya12 [62]

<u>1. Basic savings account  </u>

-allows ATM withdrawals  

-allows money transfer  

A savings account is an interest bearing deposit account held at a bank or other monetary foundation that gives an unassuming loan fee. The budgetary organizations may constrain the quantity of withdrawals you can make from your investment account every month. They additionally may charge expenses except if you keep up a specific normal month to month balance in the record. In most cases banks don't give checks investment accounts.  


<u>2. CD </u>

-offers a higher interest rate  

-has a maturity date


A certificate of deposit is a consent to store cash for a settled period with a bank that will pay you premium. You can contribute for three months, a half year, one year or five years. You will get a higher loan fee for the more drawn out time duty. You guarantee to leave all the cash, in addition to the enthusiasm, with the bank for the whole term.  

Basically, you are loaning the bank your cash as an end-result of premium. The CD is a promissory note that the bank issues you.

8 0
3 years ago
Read 2 more answers
Which business model has traditionally been used by magazines
Andrej [43]
According to Quora dot com, US magazines are viewed as historically dependent on advertising revenue hence why subscriptions to magazines are historically very low as advertising is used to subsidise cover price or subscription cost.

With the general collapse of print publications in the US, particularly led by the drying up of physical newsstand presence, magazines have a harder time getting into consumer's hands. This means that advertisers are less likely to spend in a publication (readership decreasing) and then advertising revenues go down, making magazines less and less profitable.

I realize this is quit lengthy so I'd sum it up to saying the business model for magazines has traditionally been the selling of advertising space ... Not sure if this is what you're looking for
7 0
3 years ago
Read 2 more answers
Which document should a job seeker send with a résumé to a potential employer?
anygoal [31]

Answer:

c). cover letter

Explanation:

A cover letter is a formal letter or document that a job seeker sends to a potential employer together with a resume. The letter details the positions that the vacant applicant seeks to fill. The cover letter or job application letter accords the applicant the opportunity to market themselves to the employer.

In the cover letter, a job seeker states why they are the best candidate for the position. Applicants use the cover letter to convince the employer to hire them.

6 0
3 years ago
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Exercise 2-6 Analyzing account entries and balances LO A1 Use the information in each of the following separate cases to calcula
VARVARA [1.3K]

Answer:

a) Corentine Co.

Cash paid to suppliers:

Beginning balance, September 30 $152,000

Purchases                                         $281,000

Ending balance, October 31            $132,500

Cash paid                                        $300,500

b) Valerian Co.

Sales to customers on account:

Ending balance, October 31              $89,000

Cash collected                                  $102,890

Beginning balance, September 30 $102,500

Sales                                                   $89,390

c) Alameda Company

Cash balance on September 30:

Cash disbursements $103,150

Balance, October 31   $18,600

Cash receipts           $102,500

Balance, Sept. 30       $19,200

Explanation:

The unknown amount for each case is the difference between the opening balance, the transactions for the month of October and closing balance.

5 0
3 years ago
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