Explanation:
The journal entry to record the estimated uncollectible accounts is shown below:
Bad debt expense Dr $7,500
To Allowance for uncollectible accounts $7,500
(Being the bad debt expense is recorded)
The computation is shown below:
= Estimated amount for uncollectible accounts - credit balance in allowance for uncollectible accounts
= $12,000 - $4,500
= $7,500
Answer:
9.90%
Explanation:
The appropriate approach is to include the amount expected to kept in non-interest bearing account as part of the loan
total loan=$400,000/0.95= 421,052.63
Interest charge = 421,052.63*9%*6/12=$18,947.37
interest rate percentage=$18,947.37/$400,000=4.74%
Effective annual rate=(1+4.74%
/6)^12-1 =9.90%
By dividing by 6, the interest is expressed in monthly terms
By raising to the power of 12 , it is expressed in yearly terms
The thing that would interest him the most and is an advantage is that if one partner were to make a mistake, he would not be held accountable for it. Unlike the general partnership where everyone gets equal blame for the downfall of a company, in limited liability it is known what falls under whose jurisdiction and if someone causes the company to go bankrupt, the ones whose fault it's not can't get sued.
Answer:
Cash Dr $9,808,729
To Premium on bond payable $2,008,729
To Bond payable $7,800,000
(Being the issuance of the bond payable is recorded)
Explanation:
The journal entry for issuance of the bond is shown below:
Cash Dr $9,808,729
To Premium on bond payable $2,008,729
To Bond payable $7,800,000
(Being the issuance of the bond payable is recorded)
For recording this we debited the cash as it increased the assets and credited the premium on bond payable as issued amount is more than the face value plus the liabilities is also increased so the bond payable is also credited
