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Arturiano [62]
3 years ago
6

On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p

aid $280,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 11% to Calloway. The present value of the lease payments is $280,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021? Multiple Choice Cash 26,400 Interest receivable 26,400 Cash 30,800 Interest revenue 30,800 Interest receivable 26,400 Interest revenue 26,400 Interest receivable 30,800 Interest revenue 30,800
Business
1 answer:
Delicious77 [7]3 years ago
6 0

Answer:

DR Interest receivable                                  26,400

CR Interest revenue                                                       26,400

Explanation:

As first lease has already been paid, the amount left of the lease is;

= 280,000 - 40,000

=$240,000

Interest is 11% so the interest to be received in December is;

= 11% * 240,000

= $‭26,400‬

This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.

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Answer:

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Ex: If the double value is 3.1, then the output is: 3.

Explanation:

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8 0
3 years ago
Wage and price stickiness Select one: a. gives rise to a vertical long-run aggregate supply curve. b. gives rise to a vertical s
Tresset [83]

Answer:

d. prevents the economy from producing its potential level of real GDP.

Explanation:

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5 0
4 years ago
How is performance management measured in your organisation?<br> Your answer
Vlada [557]

Performance management is measured through the human resource management department of the organisation.

Explanation:

Human resource management department of the organisation exists in a sense to keep a check on and employ people for the company and see their effectiveness and how well they are for an asset for the company and if not why they have turned out to be a liability.

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3 years ago
Julie Convenience Store sold merchandise for cash to a customer, and recorded a debit to Cash for $371, which included a 6% Sale
nlexa [21]

Answer:

C) credit Sales Tax Payable for $21

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Sales tax element= $21

Now let calculate what the Price exclusive of sales tax would be

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Price exclusive of sales tax= $350

The correct journal entry should be:

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Cr Sales revenue $350

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Cr Sales tax payable $21

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3 years ago
Double entry system means?
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Every transaction has a double effect i.e Dr and cr
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