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pav-90 [236]
2 years ago
6

On September 1, 2018, Able Company purchased a building from Regal Corporation by paying $580,000 cash and issuing a one-year no

te payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 11% and is paid at maturity. In its December 31, 2018, balance sheet, Able correctly presented the note and interest payable as follows:
Interest Payable: $ 19,800

Notes Payable, 11% due September 1, 2019 $540,000

1. How much must Able pay Regal Corporation on September 1, 2019, when the note matures?

2. What is the amount of the interest expense Able will recognize on this note in 2019?

3. What is the total cash (including interest) paid for the building purchased by Able?

4. The company's annual payroll-related expenses amount to approximately?
Business
1 answer:
Nataly_w [17]2 years ago
6 0

Answer:

1. Able must pay Regal Corporation $599,400 on September 1, 2019, when the note matures.

2. The amount of Interest Able will recognize on this Notes Payable is 39,600

3. The total cash (including interest) paid for the building purchased by Able is $1,179,400

4. Payroll related expense does not come into picture in this question. So it is not answered.

Explanation:

1. According to the given data we have the following:

Rate of Interest = 11%

Therefore:      

Year                      Amount Interest      

September 1, 2018       $540,000      

December 31, 2018            $19,800      

September 1, 2019                     $39,600      

Total                      $540,000     $59,400

Therefore, Total Payable=Notes payable+Interest 540000      Total Payable= $540,000+$59,400

Total Payable=$599,400

Able must pay Regal Corporation $599,400 on September 1, 2019, when the note matures.

2. The amount of Interest Able will recognize on this Notes Payable is 39,600

3. To calculate The total cash paid for building purchased by Able including interest we have to make the following calculation:

Total cash paid for purchase of building=Cash paid at the time of purchase of building+Notes payable+Interest

Total cash paid for purchase of building=$580,000+$540,000+$59,400

Total cash paid for purchase of building=$1,179,400

The total cash (including interest) paid for the building purchased by Able is $1,179,400

4. Payroll related expense does not come into picture in this question. So it is not answered.

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garik1379 [7]

Answer:

$3.75

Explanation:

As we already know that

Direct materials quantity variance = (Budged pounds of direct material  - Actual pounds of direct material) × Standard rate

$1,500 unfavorable  = (4,400 pounds - 4,800 pounds) × Standard rate

$1,500 unfavorable  = 400 × Standard rate

So, standard rate is

= $1,500 ÷ $400

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5 0
3 years ago
Read 2 more answers
Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to
Luda [366]

Answer:

Correct option is (B)

Explanation:

Given:

Bond issue amount = $15,000,000

Market interest rate = 7.75%

Investors cannot pay interest more than $1,150,000

Choate cannot choose 6.5%, the bond will become less attractive to investors as it indicates that the bond is selling at discount.

If 7.75% interest is given that is the market interest, then interest amount would be $1,162,500 (15,000,000 × 0.0775)

Choate cannot afford to pay more than $1,150,000, so it cannot offer bonds at 7.75% or 8.1%.

The only option left is 7.65%. Interest amount would be $1,147,500 (15,000,000 × 0.0765) which is less than what the company can afford. Also, it is just marginally lesser than market interest rate of 7.75%, so bonds would still be attractive.

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3 years ago
Lila Miller, who works for a large software firm, is four months pregnant and due for a promotion. However, her employer offers
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Answer: D) Lila's employer has violated Title VII of the Civil Rights Act of 1964.

Explanation:

Based on the information given in the question, we can infer that Lila's employer has violated Title VII of the Civil Rights Act of 1964.

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3 years ago
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result
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Answer:

b. inelastic

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Explanation:

Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

= -2/4 = -0.5

The absolute value is 0.5

If the absolute value of the coffiecnet of elasticity of demand is less than one, demand is inelastic.

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7 0
3 years ago
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LenaWriter [7]

Answer:

IRR= 21.86%

Explanation:

Giving the following information:

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<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>

Function: CMPD

n= 4

I%= SOLVE = 21.86%

PV= 10,000

PMT= -4,000

IRR= 21.86%

6 0
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