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zysi [14]
3 years ago
11

On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright rec

eived a note requiring payment of $515,000 by Elmira on December 31, 2023. The effective interest rate is 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction
Business
1 answer:
gavmur [86]3 years ago
7 0

Answer:

Sales revenue = $408,823.60

Explanation:

we must first determine the present value of the note:

PV = $515,000 / (1 + 8%)³ = $515,000 / 1.08³ = $408,823.60

discount on the note = $515,000 - $408,823.60 = $106,176.40

the journal entry should be:

January 1, 2021, school buses sold to Elmira School District

Dr Notes receivable 515,000

    Cr Sales revenue 408,823.60

    Cr Discount on notes receivable 106,176.40

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3 years ago
The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below:
Yanka [14]

Answer:

Explanation:

The preparation of the report form balance sheet as of August 31, 2019 is presented below:

                                      Sentinel Travel Service

                                 Report form balance sheet

                              For the year ended August 31, 2019

Assets

Cash                                             $143,125

Account receivable                     $54,240

Supplies                                       $9,300      

Land                                             $248,000

Total assets                                 $454,665

Liabilities

Account payable                        $19,370

Owner equity

Ending capital                            $435,295

Total liabilities

And owners equity                    $454,665

The net income would be

= Fees earned - Office expense - Miscellaneous expense - Wages expense

= $774,800 - $178,205- $15,495 - $371,905

= $209,195

And, the ending capital would be

= Opening capital - withdrawn amount + net income - additional cpiatl

= $209,000 - $29,400 + $209,195 + $46,500

= $435,295

7 0
3 years ago
In a certain country, the labor force is 30 million and the unemployment rate is 5 percent. what is the amount of unemployed ind
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Given the number of the total population who belonged in the work or labor force which is 30 million, and the recorded percentage of those who are unemployed is 5 percent, this means that a number of unemployed individuals in this country is 1,500,000. Hope this helps.
3 0
3 years ago
Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,
dedylja [7]

Answer:

= $210,000

Explanation:

The question is to determine the income realized by Mr. James in 2019

The income is calculated as follows:

First, the basic information for calculation:

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Secondly, based on the extracted figures, the income is calculated  as follows

Income realised in 2019 = 2019 worth of the house - (Purchase Price - capital addition)

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= $1,200,000 - $990,000

= $210,000

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3 years ago
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