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3 years ago

The journal entry for an installment note payment includes all except:__________.

Business

1 answer:

soldi70 [24.7K]3 years ago

5 0

Answer: a. a credit to Accounts Payable.

Explanation:

When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.

Interest expense will be debited by the interest accumulated on the loan because expenses are debited when they increase.

Notes Payable will be debited to show that the note has now been retired.

There is no credit for Accounts payable involved in this transaction.

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Marble Construction estimates that its WACC is 10 percent ifequity comes from retained earnings. However, if the company issuesn

dedylja [7]

Answer:

Projects E,F and G should NOT be considered.

Optimal Capital is $5,750,000

Explanation:

The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)

Accept if r>k

Reject if r<k

Mayaccept if r = k

If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.

The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.

And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)

8 0

3 years ago

A machine purchased 1 year ago for $85,000 costs more to operate than anticipated. When purchased, the machine was expected to b

goblinko [34]

Answer:

Value of S=$25000.

Explanation:

Value of P= $75000

Value of n= 5 years

Value of AOC= $36000+ $1500k (k=1 to 5)

Since the salvage value would be after 5 years=

S=($75000- $10000*5) = $75000- $50000= $25000.

Value of S=$25000.

4 0

3 years ago

A highly ethical organization must have all the following elements except Multiple Choice corporate credos. role models. payment

givi [52]

Answer:

The correct answer is letter "C": payment plans.

Explanation:

Highly ethical organizations are those with a well-established Code of Ethics that comprises its corporate credos and values. Within a company, the idea of having "heroes" also helps to spread good practices since they are taken as role models so other employees tend to follow their example. Managers must be aware of the ethical behavior of employees to correct or eliminate any existing threat.

Thus, having different payment plans are not considered in the setting of a corporation's Code of Ethics.

7 0

3 years ago

The relationship between increasing prices and decreasing money value is called

Lana71 [14]

Answer:

Inflation occurs when prices rise across the economy, decreasing the purchasing power of your money.

Explanation:

Can I please get on the brainlist

6 0

1 year ago

Read 2 more answers

uppose you buy a bond with a coupon of 7.8 percent today for $1,080. The bond has 5 years to maturity. Assume interest payments

Mariulka [41]

Answer:

45.58%

Explanation:

Rate of return is the expected gain or loss on an investment, over a specific time period. It is derived as a percentage of the investment's original value or cost.

ROR = [CV - IV]/ IV × 100

CV is the current value of the investment (value at the end of the investment period)

IV is the initial value of the investment.

Note also, the assumption that interest payments are reinvested.

At the end of year 1, interest payment is $1,164.24

End of year 2 - $1,255.05

End of year 3 - $1,352.95

End of year 4 - $1,458.48

End of year 5 - $1,572.24

[Interest rate - 7.8%]

ROR = (1572.24 - 1080)/1080 × 100

ROR = 45.58%

5 0

3 years ago