Answer:
Dr interest expense $2448
Dr interest payable $3060
Dr Notes payable $61,200
Cr cash($2448
+$3060
+$61,200) $ 66,708.00
Explanation:
The interest accrued at 31st December 2022 is interest for 5 months which is calculated thus:
interest as at 31st December=5/12*12%*61,200=$3060
On that interest expense would have been debited while interest payable is credited with $3060
On the due date, interest for another months need to computed as follows:
interest for four months=4/12*12%*61,200=$2448
Answer:
$270,000
Explanation:
Net capital spending = Increase in net fixed assets + Depreciation expenses
= [ Net fixed assets at year end - Net fixed assets at the beginning ] + Depreciation expenses
= [$5,200,000 - $4,600,000] + $330,000
= $600,000 - $330,000
= $270,000
Answer:
0.087 = 8.7%
Explanation:
Present value of perpetuity given that payment is done at the end of N-year
= present value * ( 1 + i )^n-1
= 169 * ( 1 + i )^n-1 = 100 / i
∴ ( 1 + i )^n-1 = 100 / 169i ------- ( 1 )
Given that first payment at the end of N years = 2112.50 hence the present value of 2112.50
= 2112.50( 1 + i )^n-1 = 100 / i + 100/ i^2 --- ( 2 )
(given that the increment is with a difference of 100 ) and N-1 = number of years
next step : Input equation 1 into equation 2
2112.50 i^2 = 169i [ 100i + 100 ]
19350 i^2 = 16900i
∴ i = 16900 / 19350 = 0.086956 ≈ 0.087
Answer:
Net Income will be overstated
Explanation:
The journal entry for salaries payable is
Salaries Expense Dr.
To Cash A/C
(Being salaries paid recorded)
Salaries expense is charged to net income and the journal entry is
Net Income Dr.
To Salaries Payable
Salaries expense reduces net income as it being a deductible expenditure for a corporate.
In the given case, salary expense has been accounted as a product cost. This would reduce the expenses and thus would overstate the net income.
Answer: Protective tariff
Explanation: Protective tariffs are basically designed to protect the domestic producers from foreign competition. These tariffs raise the retail price of imported products making them expensive in comparison to domestic products and thereby making domestic products more competitive.
Thus, by placing a tax on imported equipment in order to make it more expensive, these industries hope that <em>Protective tariff</em> will allow u.s. producers to be more competitive.
