Answer:
The Parry Glitter Company
The Parry Glitter Company should record the Notes Receivable as $300,000.
It should also record the interest receivable per year as $24,000 and the advertising cost as $24,000 per year. These bring into the accounting records the interest revenue and also the advertising expense, which eventually cancel each other.
Step-by-step explanation:
a) Data and Calculations:
Notes Receivable = $300,000
If the notes receivable are repaid at the end of 3 years and it is assumed that the interest on the notes receivable = 8%
Therefore, the cost of the free advertising will be equal to $24,000 ($300,000 * 8%), which is the cost of the interest to the radio station.
Calculating Total Cost. Multiply the cost of an item or service by the sales tax in order to find out the total cost. The equation looks like this: Item or service cost x sales tax (in decimal form) = total sales tax. Add the total sales tax to the Item or service cost to get your total cost. Multiply retail price by tax rate
Let's say you're buying a $100 item with a sales tax of 5%. Your math would be simply: [cost of the item] x [percentage as a decimal] = [sales tax]. That's $100 x .
Move the 14 over and get
5x = 2
divide by 5
x = 2/5
A) because it is 2/3 past 1
