Answer:
Darby Company
The amount of interest payable at December 31, Year 1 is:
$76.67
Explanation:
a) Data and Calculations:
Cash Revenue = $1,300
Bank Note Payable = $2,300
Interest rate on Bank Note = 10%
Issue date of bank note = September 1, Year 1
Term of bank note = 1 year
Amount of interest payable on December 31, Year 1:
= $2,300 * 10% * 4/12 = $76.67
b) The amount of interest payable on the loan totals $230 ($2,300 * 10%). However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67. This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2. In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.
Answer:
$750
Explanation:
The formula for determination of beginning inventory is given below:
Cost of goods sold=opening inventory+purchases-closing inventory
Cost of goods sold=$2,000
Purchases=$2,250
closing inventory=$1,000
Opening inventory=Cost of goods sold+closing inventory-purchases
=2,000+1,000-2,250
=$750
When a company expands by entering a new business area, it is called growth through diversification.
Diversity is the means of being different, new, exciting.. something not like another. When a business enters something new, it's called diversification because it's not like what they've done before. With this comes risk but huge growth potential.
Answer:
True
Explanation:
Because the less product means less sales and less happy people. Hope this helps.
