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3 years ago

Which type of account typically has very high liquidity, low or no interest, and low minimum balance?

1 answer:

8 0

The current or checking account typically has very high liquidity, low or no interest, and low minimum balance. The current or checking account usually used for the daily transaction and they have a similar trait like the e-cash<span>. The current or checking account is one of three types of the bank deposit account.</span>

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Uniform Supply accepted a $10,200, 90-day, 8% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on

MArishka [77]

Answer:

cash 10,404 debit

interest revenue 34 credit

interest receivable 170 credit

note receivable 10,200 credit

Explanation:

The note for the time period of October 17 to December 31th has accrued interest

those interest will be recognize on that same accounting period.

Then, at the moment of honor the note Uniform will recognize the interest from ja 1st to jan 15th

The total cash proceeds will be the principal and 90 days interest at 8%

The principal will be 10,200

<u>Let's dive into the interest:</u>

Interest = principal x rate x time

Where rate and time should be expressed on the same metric.

10,200 x 8% x (90 days/360 days a year)=

10,200 x 8% x 1/4 = 204

Those interest are recognize in accounting in two parts:

10,200 x 8% x (15 days/360 days a year)= 34

<u>from october 17 to december 31th</u>

10,200 x 8% x (75 days/360 days a year)= 170

<u>On the journal entry, Uniform will do:</u>

Write-off the note receivable and the interest receivable

It will declare the interest revenue for the period jan 1st to Jan 15th

It will post the total cash received from Tracy Janitorial

7 0

3 years ago

Huey sold a warehouse with an original cost of $150,000 for $230,000 to an S corp where he owns a 51% interest. The S corp will

MAVERICK [17]

Answer:

$2,700

Explanation:

First, we need to determine the value of the warehouse at sale.

Current value = $150,000 - $40,000

= $110,000

The gain or loss = Selling price - Current value

= $230,000 - $110,000

= $120,000.

We will also determine the partnership interest amount, which is;

= 51% × $230,000

= $117,300

This means that the interest value of $117,300 will be used to buy off the warehouse.

Hence, Huey's gain and taxable gain will be;

= $120,000 - $117,300

= $2,700

6 0

3 years ago

Alicia (age 27) is a single, full-time college student. she earns $13,200 from a part-time job and has taxable interest income o

gavmur [86]

AGI= 13200+1450= 14650

<em>less</em> Standard Deduction for 2017 (6350)

Equals 8300

<em>Less 2017 deduction amount </em> (4050)

Final answer is 4250

7 0

3 years ago

Read 2 more answers

Norton Corporation received cash from issuing 10-year $200,000 bonds at face value. Interest of $10,000 is paid annually to the

Jobisdone [24]

Answer:

Issuance of bonds is a cash inflow

Payment of interest is a cash outflow

Explanation:

The issue of the bond at $200,000 face value would be a cash inflow under the financing activities of the cash flow when issued since more cash was received from the bondholders.

However,the payment of bond interest of $10,000 yearly is a cash outflow under the financing activities section of the statement of cash flows,since Norton Corporation would be parting with the amount on yearly basis till the bonds are retired.

5 0

3 years ago

Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apar

Ivahew [28]

The determination of the transaction price for this contract for Nair Corp. is as follows:

Completed by Probability:

Date Probability Bonus/Penalty Outcome

August 1, 2015 70% $150,000 $105,000 ($150,000 x 70%)

August 8, 2015 20% $50,000 -10,000

August 15, 2015 5% $50,000 -2,500

After August 15, 2015 5% $50,000 -2,500

Total expected value of performance bonus = $135,000

Contract value = $1,000,000

Total transaction price = $1,135,000 ($1,000,000 + $135,000).

<h3>What is a transaction price?</h3>

A transaction price is the amount of consideration expected to be paid or received for the exchange of goods or services.

A transaction price can vary based on timing or performance factors.

<h3>Data and Calculations:</h3>

Contract value = $1,000,000

Performance bonus = $150,000

Penalty per week in performance bonus = $50,000

The total transaction price is <u>$1,135,000</u>.

Learn more about contract transaction prices at brainly.com/question/984979

4 0

2 years ago