Answer:
Interest expense --------$1,500
Interest payable-------------- $1,500
Explanation:
Given the following ;
Amount of note signed = $75,000
Annual interest rate = 12% = 0.12
Date signed = November 1
Calculate interest expense to be made in the adjusting entry by December 31 :
NOTE: No entries have been made previously for the interest expense
Monthly Interest = (Amount × rate) ÷ 12
Monthly interest = ($75,000 × 0.12) ÷ 12
Monthly interest = $9000 ÷ 12 = $750
November 1 to December 31 = 2 months
$750 × 2 = $1500
Interest expense = $1,500
Answer:
The revenue that the investment in the company would increase by $100,000.
Explanation:
Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:
- Cost
- Net Realizable Value (Fair Value less Cost to Sell)
This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.
The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.
Answer:
$30
Explanation:
Earning per share is calculated dividing Earning for the year excluding preferred dividend by outstanding number of shares.
Formula for EPS is as follow:
Earning Per share = ( Net Income - Preferred Dividend ) / Outstanding Numbers of shares
We need to calculate the net Income, which is calculated as below
Net Income = Revenue - Cost of Goods Sold - Operating Expenses - Financing costs = $50,000,000 - $40,000,000 - $5,000,000 - $2,000,000
Financing costs = $3,000,000
Placing Values in the formula of EPS
EPS = $3,000,000 / 100,000 shares = $30
Answer:
Cohesiveness
Explanation:
The measure of the level of unity in a group or team is called cohesiveness. It is a measure of how communicative the members of a team are. It describes the linking bond among them that makes them act as a team.
Cohesiveness is important because it also affect the extent to which members of a team are committed to working with centrally defined strategies and decisions. A cohesive team is a team that with increased morale and it also helps to boost productivity.
The feeling of being part of something big helps highly cohesive teams to achieve great job performance.
The lack of cohesiveness in Frank's team is evident in the low level of communication as well as the low level of productivity.
Answer:
Lease Equipment $150,000
BUY EQUIPMENT$134,700
Differential Effects-$15,300
The company should choose BUY EQUIPMENT which is Alternative 2
Explanation:
Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease Equipment (Alternative 1); Buy Equipment
(Alternative 2); Differential Effects (Alternative 2)
Costs:
Purchase price $0 $120,000 $120,000
Freight and installation $0 $1,500 $1,500
Repair and maintenance (6 years) $0 $13,200.$13,200
($2,200*6=$13,200)
Lease (6 years) $150,000 $0 -$150,000
($25,000*6)
Total costs $150,000 $134,700 -$15,300
Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2
