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Ierofanga [76]
3 years ago
10

West Company borrowed $10,000 on September 1, Year 1 from the Valley Bank. West agreed to pay interest annually at the rate of 6

% per year. The note issued by West carried an 18-month term. Based on this information the amount of interest expense appearing on West's Year 1 income statement would be:
a. $0.


b. $234


c. $585


d. $780
Business
1 answer:
Setler [38]3 years ago
8 0

Answer:

The correct answer is $200

Explanation:

The interest expense appearing on the company's income statement in year 1 is for  a period of four months(September to December) year 1.

The interest expense using an annual rate of 6% is computed thus:

interest expense=$10,000*6%*4/12=$200

The correct option is $200 which is not one of the options provided,hence the options need.

In another version of the question,option D was $200 which shows is missing here,

All in all, the correct answer is $200 interest for a period of four months from September to December

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Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabil
Zepler [3.9K]

Answer:

Total cost= $877,500

Explanation:

<u> First, we need to calculate the unitary variable cost:</u>

Unitary variable cost= 135,000 / 30,000= $4.5

Unitary variable cost= 180,000 / 40,000= $4.5

Unitary variable cost= 225,000 / 50,000= $4.5

<u>Now, the total cost for 35,000 hours:</u>

Total cost= Unitary variable cost*total number of hours + fixed costs

Total cost= 4.5*35,000 + 720,000

Total cost= $877,500

4 0
3 years ago
Nathan started the first outlet of dynamix gym in new york city in 1995. the business expanded over time, and he became the owne
abruzzese [7]

Nathan is considered to be a franchiser. A franchiser is being defined as someone who owns an overaching company or trademarks and products in which they give a right to the franchisee to be able to run the franchise’s location in which is agreed with a fee.

3 0
3 years ago
Explain how the amount of your deductible is likely to affect the amount of your premium.
Lapatulllka [165]

Answer:

See below

Explanation:

A deductible is an amount you upfront to a health insurance provider before insurance coverage can begin. The insurance company will not pay for health care services before the deductible is paid.

There is an indirect relationship between the amount of deductible paid and the premiums to be paid. When the deductible amount is high, the insurance premiums are low.

If the insurance policy has a low deductible requirement, the insurance premiums will be high.

8 0
3 years ago
Fran’s Fries has budgeted sales for May, June and July at $500,000, $680,000 and $720,000, respectively. Sales are 80% cash and
nika2105 [10]

Answer:

Results are below

Explanation:

Giving the following information:

Sales are 80% cash and 20% on account.

Sales:

May= $500,000

June= $680,000

July= $720,000

Cash collection June:

Cash collection from May= (500,000*0.2)= 100,000

Cash collection June= (680,000*0.8)= 544,000

Cash collection June= $644,000

Cash collection July:

Cash collection from June= (680,000*0.2)= 136,000

Cash collection July= (720,000*0.8)= 576,000

Cash collection July= $712,000

3 0
3 years ago
Question 8
Ghella [55]

Answer:

D

Explanation:

I know the answer

8 0
3 years ago
Read 2 more answers
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