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amid [387]
4 years ago
11

Immediately after a note payable was signed, its present value was $30,000. This note and $20,000 cash were used to acquire a us

ed plant asset at the beginning of the current year. The interest rate implied in the note is 6%. Total interest payments due on the note over its term amount to $4,000. The term exceeds one year. No payments on the note are due during the current year. What amount of interest expense is recognized for the first year (current year) on this note, and what amount is capitalized to the plant asset account?
Business
1 answer:
kozerog [31]4 years ago
6 0

Answer:

plant assets  50,000

interest expense 2,400

Explanation:

the plant assets will be the sum of the 20,000 andthe present value of the promissory note (without interest) which, we are given as 30,000

therefore 50,000 will be the value of the plant assets

accrued interest for the year

principal x interest rate

30,000 x 6% nterest rate = 2,400

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Accounting has its own vocabulary and basic relationships. Match the accounting terms with the corresponding definition or meani
balandron [24]

Answer and Explanation:

The matching of the accounting term with the definition is shown below:

1. Debit - it comes in the left side i.e. (i)

2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)

3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)

4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)

5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)

6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)

7. Payable: It is a liability and it always a credit balance and shown in the balance sheet i.e (h)

8. Journal: In this the transactions are recorded i.e. (c)

9. Receivable: This is an asset and it has always a debit balance i.e. (a)

10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)

8 0
4 years ago
In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value re
BaLLatris [955]

Answer:

c)consumer’s desired price is too low, producers may limit the amount produced 

Explanation:

In a free market economy, price and quantity produced is determined by the forces of demand and supply. If there's a disequilibrium in the market, market forces bring about equilibrium.

In this question, there's a disequilibrium; there seems to be excess supply. To restore equilibrium, supply has to fall so equilibrium can be restored.

I hope my answer helps you.

5 0
4 years ago
Steele Corporation has the following information for January, February, and March:
frozen [14]

Answer:

d. $2,000 less

Explanation:

The computation is shown below:

<u>Particulars      January        February             March </u>

Units beg.

inventory              0                 3,000             4,500

Units produced     10,000       10,000           10,000

Units sold             -7,000        -8,500           -10,500

Units ending

inventory               3,000         4,500                  4,000

Now

= $4 × (4,500 - 4,000)

= $2,000

So, here the income arise from absorption costing should be lower than the variable costing as the inventory is reduced  

7 0
3 years ago
Reasons for youth unemployment
TEA [102]
Most youths don’t want to work, and some that do find it hard getting a job because no one wants to give them a chance. Most places ask for experience in that field but how can I have experience if no one ever gave me a try also the older folks don’t want to give up their seat at the table for anyone.
7 0
3 years ago
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Alisiya [41]

Answer:

C. $17,500

Explanation:

1,300 / 200 = 6.5

we are going to hire between 6 and 7 welder as we are given the requirement <u>"for every 200 hours or fewer in a month"</u> we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.

7 0
3 years ago
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