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Ahat [919]
3 years ago
9

On September 1, Sky Mountain Co. borrowed $54,000 on a 6%, 9-month note payable to Coast National Bank. Given no previous adjust

ing entries have been recorded, Sky Mountain's adjusting entry four months later at December 31 would include a: _____.
Business
1 answer:
REY [17]3 years ago
6 0

Answer:

Sky Mountain's adjusting entry four months later at December 31 would include:

Debit Interest expense $1,080

Credit  Interest Payable $1,080

Explanation:

Sky Mountain Co. borrowed $54,000 on a 6% note payable to Coast National Bank.

The amount of interest for 1 year = $54,000 x 6% = $3,240

The amount of interest for 1 month = $3,240/12 = $270

From September 1 to December 31, in Sky Mountain Co.

The amount of interest expense =  $270 x 4 = $1,080

Sky Mountain's adjusting entry at December 31:

Debit Interest expense $1,080

Credit  Interest Payable $1,080

You might be interested in
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T
Margaret [11]

Answer:

<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>

1. Gross accounts Receivable = Allowance Account balance at beginning / 10%

= $30,000 / 10%

= $300,000

2.     Year   Account Title                              Debit     Credit

       2021  Bad debt expense                   $105,000

                  ($500,000*10% + $55,000)  

                         To Allowance for Doubtful Accounts   $105,000

3.  Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account

= $30,000 - (- $50,000)

= $30,000 + $50,000

= $80,000

4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000

4 0
2 years ago
Andrea is a real estate agent, however, she does not have a license as required by statute. Andrea sells a piece of property to
faust18 [17]
<span>The answer is "</span><span>A) If the licensing statute is primarily a regulatory statute, (designed to protect the publicity), Andrea cannot collect her commission</span><span>."
</span>

Regulatory statutes refers to the licensing statutes sanctioned to ensure general society. unlicensed people can't recuperate installment for giving administrations that an authorized individual is required to give.
4 0
3 years ago
On January 1, 2021, Clark Corporation sold an $800,000, 7% bond issued for $767,320. The bonds are to pay interest quarterly and
serg [7]

Clark Corporation's total cost of borrowing $800,000, 7% bonds issued for $767,320 for 5 years is $344,702.87.

<h3>What is the total cost of borrowing?</h3>

The total cost of borrowing includes the bond discounts and the interest expenses.

In this case, the total cost of borrowing is $344,702.87.  However, this is only the pre-tax cost.

<h3>Data and Calculations:</h3>

Face value = $800,000

Interest rate = 7%

Bonds proceeds = $767,320

Bonds discounts = $32,680 ($800,000 - $767,320)

Maturity period = 5 years

Market rate = 8%

Interest payment = quarterly

Quarter interest expense = $14,000 ($800,000 x 7% x 1/4)

N (# of periods) = 20 (5 x 4)

I/Y (Interest per year) = 8%

PMT (Periodic Payment) = $14,000 ($800,000 x 7% x 1/4)

FV (Future Value) = $800,000

<u>Results:</u>

PV = $767,297.13

Sum of all periodic payments = $280,000 ($14,000 x 20)

Total Interest = $312,702.87

Total cost of borrowing = $344,702.87 ($32,680 + $312,702.87)

Thus, Clark Corporation's total cost of borrowing $800,000, 7% bonds issued for $767,320 for 5 years is $344,702.87.

Learn more about the total cost of borrowing at brainly.com/question/25599836

6 0
1 year ago
Label popular sports with the countries in which they are the most popular
kifflom [539]

cricket- India

football- Russia

tennis- France

8 0
2 years ago
Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 100,000 units of basic, 460,000
statuscvo [17]

Answer:

Bricktan Inc.

The total contribution margin if Bricktan chooses the most profitable sales mix is:

= $22,350,000.

Explanation:

a) Data and Calculations:

                                                     Basic               Classic              Deluxe

Sales units                                100,000             460,000           170,000

Limited production capacity = 110,000 hours

Units per hour                                   10                          8                       4

Sales mix                                           10                          8                       4

Contribution per unit                      $15                     $25                  $55

Contribution per hour                  $150                   $200               $220

Total production hours             10,000                57,500            42,500

Total contribution margin $1,500,000       $11,500,000     $9,350,000

Total contribution = $22,350,000

4 0
2 years ago
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