Answer:
A. a debit to Interest Expense for $ 36, 000
Explanation:
Based on the information given we were told that Flipco has note payable on January 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5% interest. This means that the Journal entry to record the transaction on December 31, 2019 will includes a Debit to interest expense for $36,000 calculated as :
Interest expense= $800,000-$80,000
Interest expense=( $720,000* 5%* 12/12)
Interest expense =$36,000
Therefore the Journal entry to record the annual payment on December 31, 2019 will includes :
A Debit to interest expense for $36,000
I'd rather use my Saving but Getting a loan from family or friend is Kinda Nice if they have the money for it. but Borrowing from a Bank is Smart But Do You Even Have enough money in you're bank for it?
Answer: $30,000
Explanation:
Company estimates that 60% of boxtops will be redeemed.
They sold 500,000 boxes
= 500,000 * 60%
= 300,000 boxtops will be sent in.
So far, 220,000 have been sent in. How many left;
= 300,000 - 220,000
= 80,000 boxtops are still to be sent in
4 boxtops are needed to receive a pottery bowl so with 80,000;
= 80,000/4
= 20,000 pottery bowls are due to be issued.
Each bowl costs $2.50 to make. Customers will send in $1 however so effectively it will cost the company;
= 2.50 - 1
= $1.50
With 20,000 still left to be issued, each costing $1.50, the total liabilitiy for outstanding premiums to be recorded at the end of 2007 is;
= 20,000 * 1.5
= $30,000
Answer:
The answer is stated below:
Explanation:
If the SEC and the AICPA, worked altogether in order to share the information, they might have detected the fraud prior. The case states that the Madoff Securities does not required to submit the peer review program to AICPA as Friehling, had recorded that he did not perform or conduct any audits.
Recommendation
1. The policy execution for the exchange of the information among the two firms would be useful to detect the fraud.
2. The PCAOB should spend more resources an attending the hotline of whistle blowing through executing the policies which need certain complaints to be addressed effectively.
3. The firms or company should have done more in order to verify the financial statements assertions, which surrounds the investments. The PCAOB need to execute the policy that require the companies (such as Madoff Securities) to correctly answer the inquiries of the auditor.
