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dmitriy555 [2]
3 years ago
6

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $8

5,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense
Business
1 answer:
Fiesta28 [93]3 years ago
4 0

Answer:

Required 1

<u>January 1</u>

Cash $340,000 (debit)

Note Payable $340,000 (credit)

Required 2

$27,200  goes toward interest expense.

Explanation:

<u>Issuance of the Note :</u>

Assets of Cash are increasing, the Liabilities are also increasing.

<u>Payment at December 31 :</u>

The Annual Payment comprises of Capital Repayment and Interest Expense.

Prepare an amortization schedule using the details of the Note highlighted below to separate the Capital Repayment and  Interest Expense Component :

PV = $340,000

PMT = - $85,155

N = 5

i = 8%

P/yr = 1

FV = $0

Note Schedule is attached !

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Answer:

The question seems to have missing parts which I could not find on the internet, however I have tried to answer the part available as below :

To a greater extent,  managers need to have experience in accounting and with financial statements to understand their Decision Implications on Profit and to communicate with the Public and Stakeholders well.

Explanation:

Experience with Accounting and with Financial Statements are very important in that understanding these, Managers would be well aware of their Decision Implications on the bottom line - Profit. The performance of every manager can be traced back to items  that where within their control and these are shown in financial statements. The financial statement is also a vital document when the Company is communicating to the Public or to other Stakeholders and as such Managers need to be aware of. Some Managers are Sole Traders who need to have experience with accounting and with financial statements among other skills.

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In conclusion it is to a greater extent,  managers need to have experience in accounting and with financial statements to understand their Decision Implications on Profit and to communicate with the Public and Stakeholders well.

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3 years ago
What are the United Nations Human Rights Council
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The Human Rights Council is an inter-governmental body within the United Nations system made up of 47 States responsible for the promotion and protection of all human rights around the globe.
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3 years ago
According to economists, inflation is a. eliminated by the government. b. unavoidable, and therefore something beyond the contro
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Hence from the above we can conclude that the correct option is D.

7 0
3 years ago
2. A couple would like to take a cruise to Alaska, 15 months from now. They have $1500 in a savings account. The savings account
ivann1987 [24]

Answer:

a.- $ 3,529.82  

b.-  $ 3,512.11

c.-  $   132,77

Explanation:

In each case, we must calculate the value of their current savings and the additional investment.

The saving are the same for each scenario so let's calculate that first:

Principal \: (1+ r)^{time} = Amount

Principal 1,500.00

time 15 years

rate 0.01000

1500 \: (1+ 0.01)^{15} = Amount

Amount 1,741.45

Then we add the funds generated from the investment:

a.- 110 annuity due for 15 month:

C \times \frac{(1+r)^{-time} -1}{rate}(1+r) = FV\\

C  $ 110

time 15 months

rate 0.01

110 \times \frac{(1+0.01)^{15} -1 }{0.01} = FV\\

FV $1,788.3651

We add the savings and get a total of:  $ 3,529.82  

b.- 110 ordinary annuity

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C  $ 110

time 15 months

rate 0.01

110 \times \frac{(1+0.01)^{15} -1}{0.01} = FV\\

FV $1,770.6585

Plus, original savings of 1,741.45 =  3,512.11  

c.-

If they need 3,900 then the fund must cover the difference between these and the savings future value:

3,900 - 1,741.45 = 2,158.55

Now we calculate the PMT, considering the payment are at the beginning:

FV \div \frac{(1+r)^{time} -1 }{rate}(1+r) = C\\

FV  $ 2,158.55

time  15

rate           0.01

2158.55 \div \frac{(1+0.01)^{15} -1}{0.01} (1+0.01) = C\\

C  $ 132.770

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Charge discrimination refers to charging distinct clients special costs for the same true carrier. The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act outlaw price discrimination while the intent of that discrimination is to harm competitors.

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Learn more about Price discrimination here: brainly.com/question/23342760

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