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Stella [2.4K]
2 years ago
13

On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Co

mpany. What amount of interest expense is accrued at December 31 on the note
Business
1 answer:
Lera25 [3.4K]2 years ago
8 0

Answer:

Interest expense $80

Explanation:

the journal entry to record the issuance of the note:

December 1, 202x, note issued in replacement of account payable

Dr Accounts payable 24,000

    Cr Notes payable 24,000

the journal entry to record accrued interests payable is:

December 31, 202x, accrued interests payable

Dr Interest expense 80

    Cr Interests payable 80

Interest expense = $24,000 x 4% x 1/12 = $80

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What is the change due if a $5 bill is tendered for a charge of $4.21?
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2 years ago
has a monthly target operating income of $ 15 comma 000. Variable expenses are 70​% of​ sales, and monthly fixed expenses are $
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Margin of safety=55.6%

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The formula for the operating income is as folows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=Answer:

Explanation:

The formula for the operating income is as follows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=$90,000

Current sales=$90,000

The formula for margin of safety is as follows;

Margin of safety=(Current sales level-break even point sales level)/current sales levels

At break even,

Operating income=0

0=S-(0.7 S+12,000)

0=S-0.7 S-12,000

0.3 S=12,000

S=12,000/0.3

S=40,000

Break even sales=$40,000

replacing;

Margin of safety=((90,000-40,000)/90,000}×100

Margin of safety=55.6%

7 0
3 years ago
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