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Aloiza [94]
3 years ago
6

Watunga County Bank agrees to lend Vaughn Granite Company $599000 on January 1. Vaughn Granite Company signs a $599000, 8%, 9-mo

nth note. The entry made by Vaughn Granite on January 1 to record the proceeds and issuance of the note is
Cash 599000
Interest Expense 35940
Notes Payable 599000
Interest Payable 35940
Interest Expense 35940
Cash 563060
Notes Payable 599000
Cash 599000
Notes Payable 599000
Cash 599000
Interest Expense 35940
Notes Payable 634940
What is the adjusting entry requited if Hoffman Granite Company prepares financial statements on June 30th?
Business
1 answer:
tangare [24]3 years ago
5 0

Answer:

DR Cash                             $599,000

CR Notes Payable                                $599,000

Explanation:

As this is the entry for the issuance of the note, interest will not be recorded as it is incurred as during the loan period.

Entry will be;

Date                  Details                                                 Debit                   Credit

Jan 1                  Cash                                                  599,000

                          Notes Payable                                                               599,000

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vladimir2022 [97]

Answer:

Sell before assembly, The company will be better off by $4 Per Unit

Explanation:

Calculation to determine what decision should Vaughn make

PROFIT BEFORE ASSEMBLY

Profit = Sale price - Cost price

Profit= $51 - $24

Profit= $27 Per Unit

PROFIT AFTER ASSEMBLY

First step is calculate the Cost of Assembled Product

Cost of Assembled Product =$24 + $14

Cost of Assembled Product= $38 Per Unit

Now let determine the profit

Profit = Sale price - Cost price

Profit= $61 - $38

Profit = $23 Per Unit

Now let Determine what decision should Vaughn make

Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :

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The commissioners for Walker County are actively negotiating with Falcon Industries regarding the location of a new manufacturin
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Answer:

Explanation:

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