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DIA [1.3K]
3 years ago
8

A business issued a 90-day, 9% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial s

tatements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note.
Business
1 answer:
SSSSS [86.1K]3 years ago
7 0

Answer:

The computation is shown below:

Explanation:

The journal entries are shown below:

a. Account payable $70,000

           To Notes payable $70,000

(Being the issuance of the note is recorded)

b. Note payable $70,000

  Interest expense $1,575

              To Cash $71,575

(Being the payment of the note at maturity date including interest is recorded)

The computation is shown below:

= $70,000 × 9% × 90 days ÷ 360 days

= $1,575

We assume 360 days in a year

Now the effects on the accounts and the financing statement for issuance of the note is shown below:

Balance sheet

Assets          =   Liabilities   + Stockholder equity    Income statement  cash flow statement

No effect = Account payable - $52,000 + No effect  No effect + no effect

                   Note payable + $52,000      

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2 years ago
In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. T
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Usually, these stock are issued/owned by individual that started or co-start the business.

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Therefore, the individuals that have special voting rights owns a special class of stock called the classified stock.

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2 years ago
Indicate how each of the following transactions affects U.S. exports, imports, and net exports.
Oxana [17]

Answer:

 export               import                net export  

1. increases         unchanged         increases

2. unchanged       increases             decreases

3.  unchanged       increases             decreases

4. unchanged       increases             decreases

5. increases         unchanged         increases

Explanation:

export would comprise of goods and services produced in the US that are been sold to foreign countries

Import would comprise of foreign produced goods and services that are been sold in the US

Net export would increase when export occurs and decrease when import occurs

Net export = exports – imports

When the French historian visits the US museum and the European family visits Disney,  they are enjoying US services, thus export increases and net export increases

The purchase of books from Cambridge in UK, Panasonic camera and the visit to Japan constitutes import. These increases import and reduces net export

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2 years ago
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Answer:

Good

Explanation:

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2 years ago
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Answer:

Explanation:

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And, the outstanding checks is computed below:

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= $72,515 - $71,270

= $1,245

The preparation of the  bank reconciliation statement on October 31, 2015 for Damon Company's  is presented in the spreadsheet. Kindly find the attachment below:  

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