Answer:
A. a debit to Interest Expense for $ 36, 000
Explanation:
Based on the information given we were told that Flipco has note payable on January 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5% interest. This means that the Journal entry to record the transaction on December 31, 2019 will includes a Debit to interest expense for $36,000 calculated as :
Interest expense= $800,000-$80,000
Interest expense=( $720,000* 5%* 12/12)
Interest expense =$36,000
Therefore the Journal entry to record the annual payment on December 31, 2019 will includes :
A Debit to interest expense for $36,000
The correct answer is accounts receivable.
While a loan must be repaid, factoring is the selling of accounts receivable to a finance company who then assumes responsibility for collecting the accounts.
<h3>What is factoring? </h3>
- Factoring is concerned to a kind of financial transaction. It is also a type of a debtor finance.
- In factoring a business sells it accounts receivable to another party at a lower cost or at a discount.
- It is usually used in international trade finance.
- It is also known as invoice factoring, accounts receivable factoring, or also as receivable financing.
- In factoring there are three different parties directly involved.
- The whole process highly confidential.
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Answer:
Total cost= $9395
Explanation:
Giving the following information:
The company has two departments: Assembly and Sanding.
The Assembly Department:
Departmental overhead rate of $35 per machine hour.
The Sanding Department:
Departmental overhead rate of $20 per direct labor hour.
Job 603:
Direct labor hours used 85
Machine hours used 107
The cost of direct labor is $30 per hour
Direct materials used= $1,400.
Total cost= direct materials + direct labor + manufacturing overhead
Total cost= 1400 + $30*85 + [(107*$35)+(85*$20)]
Total cost= 1400 + 2550 + 5445
Total cost= $9395
Answer:
the cash payback period is 6.09 years
Explanation:
The computation of the cash payback period is shown below:
= Initial Investment ÷ Net annual cash inflow
= $1,400,000 ÷ $230,000
= 6.09
Now the net annual cash flow is
.
Net operating income $90,000.00
Add: Depreciation $140,000.00
Net annual cash inflow $230,000.00
Hence, the cash payback period is 6.09 years
