A note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.
<h3>What is a note payable?</h3>
It is a document that commits its issuer (the company) to pay a certain amount, within a specific period.
Its characteristic is the exchange action, which refers to the document being returned to the subscriber in exchange for payment.
Therefore, we can conclude that a note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.
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Answer:
Dr Cash $63,600,000
Cr Premium on Bonds $3,600,000
Cr Bonds payable $60,000,000
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
Dr Cash $63,600,000
(106%*$60,000,000)
Cr Premium on Bonds $3,600,000
($63,600,000-$60,000,000)
Cr Bonds payable $60,000,000
(To record issuance of the bonds)
Answer: False
Explanation: CIO is the senior most technical professional in a company whose objective is to help the organisation in achieving its goals by using his or her knowledge regarding the technology in use.
A CIO who do not have complete understanding of the business in which he works will not be able to implement the technology properly.
Thus, we can conclude that the given statement is false.
Answer: 83.53 days.
Explanation:
We would need to calculate the Current Assets as well as the Quick Assets.
Calculating the Current Assets we can use the Current ratio and Current Liabilities as follows,
Current Assets = Current Ratio * Current Liabilities
= 1.22 * 28,000
= $34,160
Then we calculate the Quick Assets which are essentially the most liquid assets being Cash and Cash Equivalents,
= Quick Ratio * Current Liabilities
= 0.71 * 28,000
= $19,880
Inventory will be Current Assets minus Quick Assets because Current Assets include all Current Assets whereas Quick Assets are Cash And Cash Equivalents Current Assets
= 34,160 - 19,880
= $14,280
We can then calculate the Inventory Turnover as,
= Cost of Goods sold / Inventory
= 62,400/14,280
= 4.36974789916 times.
Now we can finally calculate the days of Inventory by dividing the days in a year by the Turnover ratio. We will assume a 365 year.
= 365/4.36974789916
= 83.53 days.
It takes 83.53 days on average does it take to sell the inventory.