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Alexxandr [17]
2 years ago
5

g Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each

December 31 of $ 95 comma 000 plus interest at 9​%. The entry to record the annual payment on December​ 31, 2021​, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.
Business
1 answer:
Tanya [424]2 years ago
6 0

Answer:

B. a debit to Interest Expense for $ 42 comma 750.

C. a credit to Cash of $ 137 comma 750.

Explanation:

Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.

As per given data

Principal Payment = $95,000

First Interest payment = $475,000 x 9% = $42,750

Total Payment = $95,000 + $42,750 = $137,750

Journal Entry for first payment

Dr. Interest Expense $42,750

Dr. Not Payable         $95,000

Cr. Cash                     $137,750

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2 years ago
Project managers are ultimately responsible for quality management on their projects.
vovikov84 [41]
A. true

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5 0
3 years ago
Transactions for Buyer and Seller Sievert Co. sold merchandise to Vargas Co. on account, $148,600, terms FOB shipping point, 2/1
g100num [7]

Answer:

Part a

Debit : Accounts Receivable - Vargas Co. $148,600

Debit : Cost of Sales $89,160

Credit : Sales Revenue $148,600

Credit : Merchandise $89,160

Part b

Debit : Freight Expenses $2,100

Credit : Cash $2,100

Part c

Debit : Cash $133,740

Debit : Discount allowed $14,860

Credit : Accounts Receivable - Vargas Co. $148,600

Explanation:

A corresponding cost of sales must be recorded each time a sale is made. The freight costs are company costs for Sievert Co. and will be expensed in the income statement.

The payment due is at 90 % after the discount of 10% given that the payment is made within the credit term of 30 days.

8 0
2 years ago
Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevan
Zolol [24]

Answer:

Dr Construction 800000

Dr Cost of construction 1200000

Cr Revenue form long-term contracts 2,000,000

Explanation:

Based on the information given What would be the journal entry made in 2020 to record revenue is :

Dr Construction $800,000

Dr Cost of construction $1,200,000

Cr Revenue form long-term contracts $2,000,000

($800,000+$1,200,000)

(Being to record revenue)

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2 years ago
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Bonds will be the least risky since there is no risk involved at all. Bonds give out guaranteed payments and A rated bonds will be even more secure.

The next would be property. Since property is a physical asset, the risk involved is relatively lower than stocks.

The next would be retirement plans which would typically have bonds and stocks.

The most risky would be speculative stocks.

The order from least risky to most risky would be:

1. A rated bonds

2. Property

3. Retirement plans

4. Speculative stocks


3 0
3 years ago
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