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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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How do banks make a profit?
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Identify the true statement in each of the three modules. Identify the true statement. Deregulation can describe removing govern
Maksim231197 [3]

Answer:

Deregulation can describe either removing government control of the price of a good or the removal of government control of quantities.

Explanation:

Deregulation is the removal of government control , regulation or power in a particular sector or industry. An example of deregulation is the mail delivery. The government had a monopoly on the royal mail for many years

Deregulation can involve :

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2 years ago
Jonathan (an individual) owns 100% of the stock of Husky, Inc. (a C corporation) and 100% of the stock of Calhoun, Inc. (another
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B. No treatment.

Explanation:

A. The $100,000 was not structured and a loan so it will be accounted for as EXPENSES. This means that it will be deducted from the Income for the year from Calhoun's books.

B. A C Corporation is by definition taxed SEPARATELY from it's owners in the United States of America. Seeing as both Corporations were C Corporations, Jonathan as the owner of both companies need not worry about how he should treat the $100,000 payment as he will not ne taxed on it.

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3 years ago
What is an example of a situation in which the cost of capacity is substantially more than the cost of waiting? What would the w
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Answer:

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The goal of studying this theory simply relates to Optimizing Efficiency.

Let's define the concepts highlighted in the question.

Capacity cost is defined as the total amount of expenses incurred by an organization to provide for or increase its ability to conduct business operations. It can also be referred to as the <em>cost of service</em>.

Cost of Waiting on the hand within the context indicated above is how much it costs a business to keep customers waiting.

The more customers leave without making a purchase or do not return because of frustrating wait times, the higher the waiting cost.

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Explanation:

Cost of Waiting plus Cost of Service equals Total Cost.

<u><em>An optimized situation</em></u><u> is where the total cost is at it's lowest</u>. Reducing capacity may reduce costs of service, but cause an upward spike loss of sales due to lost customers.

Excessive capacity, on the other hand, will reduce the loss of sales due to the loss of customers but lead to an increase in operating costs.

To answer the questions, an example of a situation in which the cost of capacity is substantially more than the cost of waiting is given below:

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b) the waiting line in such a condition would be substantially smaller than an optimised gallery or close to zero

Cheers!

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