I got suspended today

Azure Inc. assigns $4,000,000 of its accounts receivables as collateral for a $3 million loan with a bank. The bank assesses a 3

Vlad1618 [11]

Answer with its Explanation:

Step 1:

First of all record a loan of $3 million loan:

Dr Bank $3,000,000

Cr Loan $3,000,000

Step 2:

Finance charge will be 3% on this loan amount:

Dr Finance Charge $3million *3% = $90,000

Cr Bank $90,000

Step 3:

The interest on the note is 7% which is $70,000. So the journal entry would be:

Dr Interest Expense $70,000

Cr Interest payable $70,0000

8 0

3 years ago

In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,

IrinaK [193]

Answer:

a. Premium

b. Discount

c. Discount

Explanation:

a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium

Therefore, Valley's bond will sell at a premium.

b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, Spring's bond will sell at a discount.

c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, River Inc.'s bond will sell at a discount.

3 0

3 years ago

11. John rates Peter an average worker, “excellent” on all his performance evaluations. The rest of staff suspects that Peter ge

Blizzard [7]

Considering the situation described in the question, if the allegations were accurate, the rating error the staff identified is known as the "Similarity Bias" error.

This is because the Similarity Bias is a type of rating error where the rater rates a person or candidate higher than he deserves because they shared or have some similarities like having played for the same football team or attended the same school.

There are other types of rating bias that do not apply to this situation.

These include Halo bias and Leniency bias.

Hence in this case the correct answer is "Similarity Bias"

Learn more here: brainly.com/question/14467377

6 0

2 years ago

Which statement best describes the AICPA ethics rules relating to a member's failure to file his or her personal tax return in a

Andrej [43]

Answer:

1. The failure to file a personal tax return in a timely manner is usually considered an act discreditable to the profession.

2. Advertising is permitted as long as it is not false or misleading.

Explanation:

It is considered one of the ethics of the AICPA for its members to always file their personal tax return timely. In a case where this is not done, it is considered a discreditable act to their profession. Furthermore, according to the AICPA, as long as what is being advertised portrays true intentions of the organization and does not mislead people, advertising is permitted.

8 0

3 years ago

ave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.) Sent a check for

Kaylis [27]

Explanation:

The Journal Entry is given below:-

1. Fees income Dr, $750

To cash $750

(Being fees income is recorded)

2. Utilities expense Dr, $1,050

To cash $1,050

(Being utilities expense is recorded)

3. Accounts receivable Dr, $7,800

To fee income $7,800

(Being services provided is recorded)

4. Equipment Dr, $4,600

To cash $4,600

(Being equipment purchase is recorded)

5. Accounts payable Dr, $3,500

To cash $3,500

(Being payment of is recorded)

6. Cash Dr, $15,250

To fee income $15,250

(Being cash receive is recorded)

7. Cash Dr, $6,250

To Accounts Receivable $6,250

(Being cash receive is recorded)

8. Cash Dr, $25,000

To capital $25,000

(Being additional investment is recorded)

9. Supplies Dr, $3,250

To accounts payable $3,250

(Being purchase of supplies is recorded)

10. Rent expense Dr, $3,750

To cash $3,750

(Being rent expenses is recorded)

8 0

3 years ago