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mixas84 [53]
3 years ago
11

On October 1, Eder Fabrication borrowed $84 million and issued a nine-month, 15% promissory note. Interest was payable at maturi

ty. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.
Business
1 answer:
taurus [48]3 years ago
5 0

Answer and Explanation:

The journal entries are shown below:

Cash $84,000,000  

         To Notes payable  $84,000,000

(Being issuance of the note is recorded)

Interest expense($84,000,000 × 15% × 3 ÷ 12) $3,150,000  

          To Interest payable  $3,150,000

(Being interest expense is recorded)

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if a trial balance totals do not agree, the difference must be entered in a. nominal account b. the profit and loss account C. t
Lena [83]

Answer:

d. the suspense account​

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

In Financial accounting, if a trial balance totals do not agree, the difference must be entered in the suspense account​

8 0
2 years ago
How do margin trades magnify both the upside potential and the downside risk of an investment position?
klio [65]

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.

4 0
2 years ago
The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis o
Anna35 [415]

Answer:

Donna made a realized gain of 8,000 dollars

the basis for the building now will be of 152,000 dollars

Explanation:

<u><em>realized gain:</em></u>

insurance proceeds less replacement cost:

160,000 - 152,000 = 8,000

<em><u>the basis</u></em> (value of the new office building for tax purposes) will be the 152,000 which is the cost of the office building

6 0
2 years ago
Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen
Kaylis [27]

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

5 0
3 years ago
Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $640,000; sales discounts = $14,500; sales
pochemuha

Answer:

$559,020

Explanation:

The computation of net sales is shown below:-

Total sales = $640,000

Sales discount = $14,500 + $1,450

= $15,950

Sales return = $39,000 + $4,680

= $43,680

Sales allowance = $19,000 + $2,530

= $21,350

So,

Net sales = Total sales - Sales discount - Sales return - Sales allowance

= $640,000 - $15,950 - $43,680 - $21,350

= $559,020

Therefore for computing the net sales we simply applied the above formula.

8 0
3 years ago
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