Which of the following factors would NOT hamper economic development?

Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2

nika2105 [10]

Answer:

A. Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Dr Accumulated Depreciation-Machine221,000

Cr Machine390,000

Cr Gain on Disposition of Machine 11,000

Cr Gain on Debt Restructuring 38,000

Moran State Bank (CREDITOR)

Dr Machine180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

B. Based on the information given they should report both the gain or loss on the disposition of machine as well as on restructuring of debt as ordinary gain in its 2017 income statement

C. Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Cr Common Stock150,000

Cr Additional Paid-in Capital 30,000

Cr Gain on Debt Restructuring38,000

Moran State Bank (CREDITOR )

Dr Investment 180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

Explanation:

(a)Preparation of the journal entries .

Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Dr Accumulated Depreciation-Machine221,000

Cr Machine390,000

Cr Gain on Disposition of Machine 11,000

[$180,000 – ($390,000 – $221,000) ]

Cr Gain on Debt Restructuring 38,000

[($200,000 + $18,000) – $180,000]

Moran State Bank (CREDITOR)

Dr Machine180,000

Dr Allowance for Doubtful Accounts38,000

Cr Note Receivable200,000

Cr Interest Receivable18,000

(b) Based on the information given they should report both the gain or loss on the disposition of machine as well as on restructuring of debt as ordinary gain in its 2017 income statement

(c)Preparation of the entries to record the transaction for both parties.

Strickland Company (DEBTOR)

Dr Note Payable200,000

Dr Interest Payable18,000

Cr Common Stock150,000

Cr Additional Paid-in Capital 30,000

Cr Gain on Debt Restructuring38,000

[($200,000 + $18,000) – $180,000]

Moran State Bank (CREDITOR )

Dr Investment 180,000

Dr Allowance for Doubtful Accounts38,000

[($200,000 + $18,000) – $180,000]

Cr Note Receivable200,000

Cr Interest Receivable18,000

7 0

3 years ago

Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return is

BlackZzzverrR [31]

Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return is equal to or greater than the discount rate.

investment is dedicating an asset to achieve an increase in value over a period of time. Making an investment requires sacrificing your current assets such as time, money, and effort. In finance, the purpose of investment is to generate profit from the assets invested.

The definition an investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.

Learn more about investment here: brainly.com/question/25895372

#SPJ4

3 0

2 years ago

Employees are required to take vacations. 2. Any member of the sales department can approve credit sales. 3. Paul Jaggard ships

aliina [53]

Answer:

1. This is an example of the practice of good human resource principles

2.This is an example of poor establishment of responsibilities

3. This is an example of lack of segregation of duties

4. This is an example of independent internal verification

5. This is an example of the practice of physical control

Explanation:

1. Employees are required to take vacations.

This is an example of the practice of good human resource principles

2. Any member of the sales department can approve credit sales.

This is an example of poor establishment of responsibilities

3. Paul Jaggard ships goods to customers, bills customers, and receives payment from customers.

This is an example of lack of segregation of duties

4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities.

This is an example of independent internal verification

5. Time clocks are used for recording time worked by employees.

This is an example of the practice of physical control

7 0

3 years ago

"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid d

solmaris [256]

Answer:

Retained earning balance at the end would be = $205,000

Explanation:

Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid

The net income would increase the balance of the retained earnings hence it is added to it.

The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

So applying this to the question, we have

Retained earning balance at the end would be:

25,000 + 200,000 - 20,000 = $205,000

Retained earning balance at the end would be = $205,000

3 0

3 years ago

Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and a perpetual system was maintained

olga_2 [115]

Answer:

Total= $77,300

Explanation:

Giving the following information:

lost, damaged, and stolen merchandise normally amounted to 5 percent of the inventory balance. On June 14, Essary's warehouse was destroyed by fire. Just before the fire, the accounting records contained a $136,000 balance in the Inventory account. However, inventory costing $16,900 had been sold and delivered to customers but had not been recorded in the books at the time of the fire. The fire did not affect the showroom, which contained inventory that cost $35,000.

Accounting record= 136,000

Normal Damaged merchandise= 136,000*0.05= 6,800 (-)

Sold inventory= 16,900 (-)

Showroom= 35,000 (-)

Total= $77,300

3 0

3 years ago