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SVETLANKA909090 [29]
3 years ago
8

A gift shop signs a three-month note payable. The note is signed on November 30 in the amount of $50,000 with annual interest of

12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date? *
Business
2 answers:
aliina [53]3 years ago
5 0

Answer:

the gift shop must recognize 31 days of accrued interest payable, total interest = principal x interest rate x time passed

= $50,000 x 12% x 31/365 days = $509.59

the adjusting entry should be:

December 31, accrued interest on note payable

Dr Interest expense 509.59

    Cr Interest payable 509.59

alexdok [17]3 years ago
4 0

Answer:

The adjusting entry to be made on December 31 for the interest expense accrued to that date is:

                               Debit  Credit

Interest expense 1,000

Interest payable  1,000

Explanation:

According to the given data we have the following:

Amount of Note = $ 50,000

Annual Interest = 12 % per annum

Period = 3 Months

Period Expired = 2 Months (i.e. November and December)

Therefore, The amount of outstanding interest is computed as $ 50,000 x 12/12 x 2 x 1/100 = $ 1,000

The adjusting entry to be made on December 31 for the interest expense accrued to that date is:

                               Debit  Credit

Interest expense 1,000

Interest payable  1,000

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"ned sets up an arrangement where some of his property is managed by a trustee for the benefit of beneficiaries. ned reserves th
Irina18 [472]

I believe the answer is:  An Revocable Living Trust

Revocable living trust refers to a form of planning that help you determine the person who would obtain your properties when you die. A revocable living trust would cover three phases of the maker's life:   his lifetime, possible incapacitation, and what happens after his death.

8 0
3 years ago
As a manager for your company some of your responsibilities include measuring metrics and overseeing company strategies. You obs
Ilya [14]

Answer:

The primary reason for the large increase in productivity would be the management factor.

Explanation

An important factor that affects the productivity in a company is the management that can have a great influence as good managers that are competent, make a good use of the resources, implement good strategies and develop good relationships with employees generating a good working environment help increase the productivity. According to the question, this is the main reason that can be inferred.

8 0
3 years ago
The purpose of the Splish Brothers Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated
Ber [7]

Answer: Please refer to Explanation.

Explanation:

Your question was incomplete so I attached the missing details.

The Carrying Amount of the Division has to be ascertained to move forward as it is needed in calculating the loss on Impairment. It is calculated by subtracting Goodwill from the Net Assets.

= 496 - 214

= $282 million

Calculating the Loss on impairment is done by the following formula,

= Market Price - Carrying Amount of the Division (net of Goodwill) - carrying value of Goodwill

= 335 - 282 - 214

= -$161 million.

Journal Entry

DR Loss on Impairment $161 million

CR Goodwill $161 million

(To record the loss on Impairment)

8 0
3 years ago
Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini
Minchanka [31]

Answer:

                 Sheridan Company

                  Income Statement

  For the year ended December 31, 202x

Sales revenue                                $170,400

Cost of goods sold                      <u>($129,600)</u>

Gross profit                                     $40,800

Period costs                                  <u>($24,000)</u>

Operating income                           $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

4 0
3 years ago
Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent. Project A costs $75,000 and has
Norma-Jean [14]

Answer:

Both projects should be rejected

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

For project A,

Cash flow in year zero = $75,000

Cash flow in year one = $18,500

Cash flow in year two = $42,900

Cash flow in year three = $28,600

IRR = 9.12%

For project B,

Cash flow in year zero = $-72,000

Cash flow in year one = $22,000

Cash flow in year two = $38,000

Cash flow in year three = $26,500

IRR = 9.48%

The decision rule on if to invest or not is if IRR > r

For both investments IRR is less than rate of return

9.12% < 10.50%

9.48% < 10.50%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button, and the compute button.

I hope my answer helps you

8 0
3 years ago
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