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lukranit [14]
3 years ago
15

Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of ope

ration: Earned $1,300 of cash revenue. Borrowed $2,300 cash from the bank. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 10 percent annual interest rate. Required a. What is the amount of interest payable at December 31, Year 1
Business
1 answer:
Anettt [7]3 years ago
4 0

Answer:

Darby Company

The amount of interest payable at December 31, Year 1 is:

$76.67

Explanation:

a) Data and Calculations:

Cash Revenue = $1,300

Bank Note Payable = $2,300

Interest rate on Bank Note = 10%

Issue date of bank note = September 1, Year 1

Term of bank note = 1 year

Amount of interest payable on December 31, Year 1:

= $2,300 * 10% * 4/12 = $76.67

b) The amount of interest payable on the loan totals $230 ($2,300 * 10%).  However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67.  This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2.  In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.

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The book balance in the checking account of Kyri Enterprises as of November 30 is $2,964. The bank statement shows an ending bal
lianna [129]

Answer:

1)

reconciliation of bank balance:

bank balance $2,525

+ deposits in transit 11/29 $125

+ deposits in transit 11/30 $200

- outstanding check N. 322 $17

- outstanding check N. 324 $105

- outstanding check N. 327 $54

adjusted bank balance $2,674

reconciliation of checking account:

checking account balance $2,964

+ error on Check N. 321 $20

- NSF check $185

- unrecorded ATM withdrawal $100

- bank fees $25

adjusted checking account $2,674

2)

To correct the error on Check N. 321

Dr Cash 20

    Cr Accounts payable 20

To record NSF check

Dr Accounts receivable 185

    Cr Cash 185

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    Cr Cash 100

To record the bank fees

Dr Bank charges 25

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4 0
3 years ago
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:
Lynna [10]

Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

01/15/21 : Purchases : 100 units x $5.3 = $530

01/28/21 : Purchases : 100 units x $5.5 = $550

Total units = 200 + 100 + 100 = 400 units

Units sold = Total inventory available for sale - ending inventory

= 400 - 160 = 240 units.

COGS:

Beginning Inventory : 200 units x $5 = $1000

Purchases : 40 units x $5.3 = $212

Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

6 0
2 years ago
What factors caused american business to develop into a mixed economic system rather than some other type of economic system?
Ksivusya [100]

The economic system in the USA is rooted in the Laissez-Faire capitalism of Adam Smith. However, the real-world setting in the US is not as Laissez-Faire as Smith would have liked because the government greatly participates as more than umpire and rule maker. The government take part in American Business by way of resource or product markets, interest, and especially taxes which results in making the American business progressed into a mixed economy, showing both elements of capitalism and socialism.

Other factors such as <span>foreign competition, the Great Depression, World Wars I and II, and the increasing age of population have also contributed to the mixed economic system.</span>

3 0
3 years ago
Read 2 more answers
Your industrial supply company wants to create a data warehouse where management can obtain a single corporate-wide view of crit
antoniya [11.8K]

Answer:

Industrial supply company scenario:

  • The company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify best-selling products in specific geographic areas, key customers, and sales trends.
  • The sales and product information are stored in both a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe.
  • The desire is to create a single standard format that consolidates these data from both systems.

Business problems:

  • A business problem that can arise from not having these data in a single standard format is that employees will see the data as inconsistent.
  • It is difficult to make business decisions if the data is unreliable, inaccurate, or redundant.
  • The product descriptions are formatted differently so managers and employees might get confused when it is entered into the system.
  • Also, the system identifies the sales by territory in the United States so it would be impossible to identify the sales or even around the world.
  • The corporate sales system also lacks a way to identify the identification of the customer.
  • Both sales system should be consistent with the information in order to prevent redundancies or inaccuracies.  

How easy it would be to create a database with a single standard format:

  • Creating a database with a single standard format would ideally be easy.
  • Data quality audits and data cleansing should be performed when constructing the new database.
  • Data quality audits and data cleansing would correct any redundancies and inaccuracies in the current systems.
  • By using data-cleansing software, the company can combine and integrate the data from all the systems into a single standard format that is uniform throughout the whole company.

Problems that should be addressed:

  • A problem that should be addressed is the product description and sales territory tags.
  • These tags have different formats which could lead to inconsistencies in the data.
  • The names would have to be changed so that they are the same format and are only entered once in the new single standard format database.
  • Another problem that would have to be addressed is keeping both the division and customer id tags in the new database.
  • This would provide more information for each entry and would limit any confusion among the employees.

Database specialists:

  • Database specialists will help solve the problems by performing the data quality audits and data cleansing.
  • They will also help in establishing an information policy and developing the new database.
  • They are also responsible for the specific policies and procedures through which data can be managed as an organizational resource.
  • This involves overseeing logical database design and data dictionary development, planning for data, and monitoring how information systems specialists and end-user groups use data.

General business managers:

  • General business managers would have the final say when managing data resources.
  • They would be responsible for defining and organizing the structure and content of the database and maintaining the database.

Who should have the authority?

  • The general business managers should have the authority because they are responsible for the data.
  • This would mean that even though they allow database specialists to establish an information policy and develop the new database, the managers are the ones who have to approve the final product in order for it to be implemented company-wide.
  • The managers are the ones whose reputations are on the line when a company succeeds or fails, so they should have the final authority.

6 0
3 years ago
Since the 1980s, many "developing" countries have liberalized trade and investment, often because they have had to accept IMF St
kolezko [41]

Answer:Please Refer to the explanation section

Explanation:

The question has insufficient information, we are supposed to be studying the diagram to determine outlier countries with poorest international shipping logistics. i have consulted the International Shipping Logistic performance  index 2018 to find poorest countries in terms of international shipping logistics. according to the world bank countries like Zimbabwe, Lesotho , Syrian Arab Leon , Sierra Leon and Niger are some of the poorest countries when incomes to international shipping

Challenges Faced by these countries.

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Countries like Zimbabwe , Niger and Lesotho face great challenges in international shipping logistics because they are land locked. any Political instabilities in the neighbouring countries affect they logistics businesses directly because the need entry to other countries to transport goods

  • Political Instability

Countries like Syrian Arab Republic, Somalia and Sierra Leon suffer from Political instability which makes it difficult for the to trade with other countries.

3 0
3 years ago
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