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ycow [4]
3 years ago
14

On January 1, 2020, a company purchased equipment and signed a 6 year mortgage note for $160,000 at 15%. The note will be paid i

n equal installments of $42,278 beginning January 1, 2021. On January 1, 2021, the journal entry to record the first installment payment will include a Group of answer choices debit to Interest Expense for $24,000 credit to Cash for $18,278 debit to Mortgage Payable for $42,278 credit to Mortgage Payable for $42,278
Business
1 answer:
son4ous [18]3 years ago
4 0

Answer:

On January 1, 2021, the journal entry to record the first installment payment will include a

debit to Interest Expense for $24,000

Explanation:

a) Data and Calculations:

January 1, 2020:

Mortgage note payable = $160,000

Note payable period = 6 years

Interest rate  16%

January 1, 2021:

Annual interest expense = $24,000 ($160,000 * 15%)

Principal repayment = $18,278 (42,278 - 24,000)

Annual cash payment to the creditor = $42,278

Complete journal entries on January 1, 2021:

Debit to interest expense of $24,000

Debit to Mortgage Payable $18,278

Credit to Cash = $42,278

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Dovator [93]

Work performance information and cost forecasts are the main outputs of cost control.

<h3 /><h3>What is cost control?</h3>

It is the set of practices that assist in the control and organization of financial resources, in order to establish a budget that is a useful tool for greater understanding of income and expenses and greater coordination of the correct allocation of finances to fulfill your needs and for the achievement of objectives and goals.

In a company, cost control will help in effective positioning in the short and long term, helping to correctly understand the company's financial situation in a period, in addition to helping in the forecast of costs, expectations and planning as a whole.

Therefore, cost control is a set of tools that assists in the budget control of a company or an individual, being positive for the best organization of finances.

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3 0
2 years ago
The following information pertains to Guillotine Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direc
kotykmax [81]

Answer:

Value of the ending inventory=$600,000

Option A is correct ($600,000)

Explanation:

Given Data:

Ending inventory=6,000 units

Direct labor per unit =$40

Direct materials per unit=$20

Variable overhead per unit =$10

Fixed overhead per unit=$30

Required:

Value of the ending inventory=?

Solution:

Value of the ending inventory=(Direct labor per unit+Direct materials per unit+Variable overhead per unit + Fixed overhead per unit)*Ending inventory

Value of the ending inventory=($40+$20+$10+$30)*6000

Value of the ending inventory=$100*6000

Value of the ending inventory=$600,000

Option A is correct ($600,000)

6 0
4 years ago
Using Statement of Cash Flows Information to Assess Company Life-Cycle Stage
yKpoI14uk [10]

Answer:

Explanation:

                     Operating         Investing          Financing     Cycle

                          3751                (2404)               1381          Growth      

                          1102                 2054                (759)          Maturity

                          20                    (480)                 926            Growth

                        (2580)               (4200)              7508           Introduction

                         (409)                 5581                (2356)         Declining

                         2281                 (3451)               1957             Growth  

                         6385                 3272                (1958)         Maturity  

                         (365)                (1678)               (3478)         Declining

In the introduction phase , cash flow from the operating and investing activities are negative as the company generate cash for investment through financing activities for operation

In the growth phase , the activities begin to pay off gradually while investing is still on simultaneously as operating activities generate a positive cash flow  , investing negative and finance positive

In the maturity phase , company start to pay offset debt and buy back the stock as the business appears stable. Operating and financing activities generate a positive cash flow and financing negative.

In declining stage ,sales begin to fall and operating activities nosedive , investing may be positive as assets are being sold off and financing activities negative.

               

5 0
3 years ago
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Rasek [7]

Answer:

C. Identify Requirements

Explanation:

Individuals who are assigned the responsibility of resource management should first of all identify resource requirements.

Identification of requirements relates to the quantum of resources required, the place where they are required and the recipient of those resources.

Resource needs and requirements change from time to time as per the situation. Resource requirements mean the quantity and the kind of resources that would be required for completion of a project.

Thus, Identify Requirements determines the type, quantity, receiving location and the users of those resources.

8 0
3 years ago
IFRS reporting requires all of the following items except
Lisa [10]

Answer:

Option C would be the correct answer.

Explanation:

In the given question, options are not mentioned. Please find the attachment of the complete query.

  • IFRS sets universal guidelines because whatever income accounts across the global economy can indeed be appropriate, straightforward, as well as equivalent.  
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Certain alternatives do not apply to the procedure outlined. But the option above would be correct.

4 0
3 years ago
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