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sdas [7]
3 years ago
11

A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note

payable. The note payable has no stated interest rate. How should the note payable be presented in the statement of financial position?
Business
1 answer:
Leokris [45]3 years ago
3 0

Answer:

The note payable will be presented in the financial statement at the face amount minus a discount calculated at the imputed interest rate.

Explanation:

The imputed rate is the rate at which the present value of the face amount of the note will be equal to the amount at which it is originally recorded.  

Notes issued or received in exchange for goods or services that do not bear interest at a fair rate are reported at an amount equal to the fair value of the note, the fair value of the goods or services, or the present value of the note using a fair interest rate, whichever is more readily determinable.  

The difference between the recorded amount and the face value is considered a discount and the applicable interest rate regardless of which method is used to value the note.

Because of this, the note is reported at its face amount minus a discount calculated at the imputed interest rate.

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Question:
valina [46]

Answer:

Explanation:

The journal entries are shown below:

1. Purchase A/c Dr $8,500

       To Accounts payable A/c $8,500

(Being purchase of inventory is made on credit)

2. Freight-in A/c Dr $45

         To Cash A/c $45

(Being freight charges is paid for cash)

3. Purchase A/c Dr $11,985

       To Accounts payable A/c $11,985

(Being purchase of inventory is made on credit)

4. Account payable A/c Dr $20,485     ($8,500 + $11985)

         To Cash A/c $20,280.15

         To Purchase discount A/c 204.85   ($20,485 × 1 %)

(Being the payment is recorded)

6 0
3 years ago
Tiffany owns a gift shop that carries clothing and memorabilia of local high school teams as well as
dimulka [17.4K]

Answer:

a. independent retailer

Explanation:

An independent retailer is a businessperson who owns and manages a retail shop. The retailer either has bought or started the business from the ground. He or she makes all the decisions relating to the business including staffing, sales, financing, and operation time.  

An independent retailer has the freedom to decide the type of business and its location.  Entry into this type of business is easy. Freedom to do what the retailer wants is one advantage of this type of business.

As the venture is privately owned, the independent retailer has full authority over the business,  as if fully responsible for its success or failure. Many businesses of this nature will fail in the first years of operations, mainly due to the lack of a business plan.

6 0
3 years ago
By default, the hyperlink will display the text in the hyperlink itself, such as the web URL.
Anvisha [2.4K]

We can see that by default, the hyperlink will display the text in the hyperlink itself, such as the web URL. This behaviour be modified in the following way: Display Alt Text.

<h3>What is hyperlink?</h3>

A hyperlink is actually known to be a link that makes reference to a data that a user can follow. Users can click or tap on the links and be guided. Hyperlink can actually point to a whole document or some specific element in the document.

It will be worthy to note that hypertext is usually text that has hyperlink.

We see that Display Alt Text will be the way that the stated behaviour can be modified.

Learn more about hyperlink on brainly.com/question/17373938

#SPJ1

4 0
11 months ago
Suppose the United States has two​ utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of s
jok3333 [9.3K]

Answer:

The incomplete part of the question is "Using a cap-and-trade system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of $1 million per year. If the permits are not tradable, what will be the cost of eliminating half of the pollution? If permits cannot be traded, then the cost of the pollution reduction will be $1 million per year." The full question is attched as picture as well

1) Tradable permit system

Then lower MAC firm will abate the all pollution units

Then as MAC1 = $250, MAC2 = $275

Firm 1 = Consolidated electric

Firm 2 = Commonwealth utility

Then 1 will sell all permits to 2, at a price between $250 & $275.

So total cost of abatement of 20 units = MAC1 * 20

= $250 * 20  Unit

= $5,000

2) Non-tradable permits

Total cost = MC1*10 + MC2*10

= $2,500 + $2,750

= $5,250

7 0
2 years ago
the five mission areas outlined in the national response framework are prevention, protection, mitigation, response, and _______
IgorLugansk [536]

Answer:

recovery

Explanation:

There is one framework for each of the five mission areas wich are Prevention,protection, mitigation,response, and Recovery

Hope this helped you!

8 0
2 years ago
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