1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kykrilka [37]
2 years ago
13

On July 1, 2019, Stacy Company signed a $140,000, one-year, 6 percent note payable. The principal and interest will be paid on J

une 30, 2020. How much interest expense should be reported on the income statement for the year ended December 31, 2019
Business
1 answer:
Ahat [919]2 years ago
8 0

Answer:

Stacy Company

The amount of interest expense that should be reported on the income statement for the year ended December 31, 2019 is:

= $4,200.

Explanation:

a) Data and Calculations:

6% Notes Payable = $140,000

Date of issuance = July 1, 2019

Interest rate per annum = 6%

Total interest expense for the one year = $8,400 ($140,000 * 6%)

Interest expense for the half-year = $4,200 ($140,000 * 6% * 1/2)

b) Therefore, the cash payment on June 30, 2020 will amount to $148,400 ($140,000 + $8,400)

You might be interested in
The MixingMixing Department of Fresh FoodsFresh Foods had 50 comma 00050,000 units to account for in OctoberOctober. Of the 50 c
xenn [34]

Answer:

Fresh Foods

Equivalent Units for October:

a) Direct Materials:                        Units   % of completion   Equivalent Units    

Completed & transferred out   25,000     100%                     25,000

Ending work in process            25,000      100%                     25,000

Total equivalent unit for direct materials = 50,000

b) Conversion costs:                 Units   % of completion   Equivalent Units    

Completed & transferred out   25,000     100%                     25,000

Ending work in process            25,000      35%                        8,750

Total equivalent unit for conversion costs = 33,750

Explanation:

Equivalent unit of production is an expression of the amount of work done on units of output to show the degree of completion in an accounting period with regard to work in process.  When the degree of completion (usually a percentage) is applied to the physical units in process, then the resulting figure is the equivalent units completed.

The calculation of equivalent units helps in the allocation of costs to units in the process of production.  Usually, additional conversion costs will be incurred in subsequent periods on the partially completed units to add to the already incurred costs in the current period unlike with fully completed units.

Equivalent units are always 100% complete as to direct materials but less for other manufacturing processes.

7 0
3 years ago
Appalachian Ski Shop signs a three-month note payable to help finance increases in inventory for the winter ski season. The note
kolezko [41]

Answer:

Interest Expense 696 Interest Payable 696

Explanation:

Based on the information given the appropiate adjusting journal entry to be made on December 31, 2022 for the interest expense accrued to that date, If we assumed that no journal entries have been made previously to accrue interest is:

December 31, 2022

Dr Interest Expense $696

Cr Interest Payable $696

($34800*8%*3/12)

(To record interest expense accrued)

3 0
2 years ago
Fitness Bands Corporation gathered the following information for Job​ #928: Standard Total Cost Actual Total Cost Direct materia
Eduardwww [97]

Question:                                      

                                                            standard total cost        Actual total cost

Direct material

Standard  2000 pints  $3.50/pint                   $7,000

Actual      2,500 pints   $5.00/pint                                                       $12,000

Answer:

Materials quantity​ variance= $1,750 unfavorable

Explanation:

<em>Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.  </em>

<em>It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price  </em>

                                                                                               pints

Standard quantity allowed                                                  2,000

Actual quantity used                                                           <u> 2,500</u>

Quantity variance                                                                 500 unfavorable

Standard price                                                                     <u> $3.50 </u>

Materials quantity​ variance                                               <u>1,750  </u>unfavorable

Materials quantity​ variance= $1,750 unfavorable

8 0
3 years ago
What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?
Julli [10]

Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

4 0
3 years ago
What was the opening price of Coca-Cola on Jan 1, 1962?
agasfer [191]

Answer:

I'm not 100 %sure but but I think 49 cents

3 0
2 years ago
Read 2 more answers
Other questions:
  • Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on deposit at the close of busi
    14·1 answer
  • A budget constraint model differs from a ppf model in that it is a ______ line and represents _________ units of measurement.
    12·1 answer
  • At year end, CurlZ Inc.'s inventory consists of 100 bottles of CleanZ with a cost of $1, and a selling price of $0.80 per bottle
    5·1 answer
  • . If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for i
    13·1 answer
  • To say that a price ceiling is binding is to say that the price ceiling a. results in a shortage. b. is set below the equilibriu
    6·1 answer
  • Catherine is married and a mother of two children. She has decided to forego her own career to stay home with her children until
    8·1 answer
  • A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our m
    12·1 answer
  • For services rendered, an attorney accepts a 90-day note for $5,500 at 8% simple interest from a client. (Both interest and prin
    7·1 answer
  • Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepa
    14·1 answer
  • QUESTION 9 of 10: You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A poten
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!