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Darina [25.2K]
3 years ago
5

On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue ac

count. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date
Business
1 answer:
Bad White [126]3 years ago
3 0

Answer:

Debit notes Payable $6,900

Debit interest expense $69

Credit   cash                               $6,969

Explanation:

The interest amount payable on maturity is $6900*6%*2/12=$69

The actual principal remains at $6900

The appropriate entries would to debit notes payable with $6,900 and interest expense with $69 while the credit of $6969 goes to cash account representing an outflow to settle the obligation.

The rationale for this is that settle of an obligation would require debit the payable account.

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Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe
JulsSmile [24]

Answer:

285,000 units

Explanation:

The computation of the cash break-even point of sales units is shown below:

Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)

where,

Fixed cost = $7,600,000

Depreciation = $7,600,000 × 0.25% = $1,900,000

And, the contribution margin per unit is $20

So, the cash break-even point of sales units is

= ($7,600,000 - $1,900,000) ÷ ($20)

= 285,000 units

8 0
3 years ago
a consumer faces a tradeoff between labor (????) and leisure (????). she consumes a composite good (????). when the consumer wor
disa [49]

Trade-off

A trade-off is a situational decision in which one quality, quantity, or feature of a set or design is reduced or lost in exchange for gains in other areas. A tradeoff occurs when one thing increases while another must decline.

What is consumer's real wage?

Real earnings are salaries that have been factoring in inflation, or wages in perspective of the amount of services and goods that may be purchased.

Main Content

$606

Given the answers to the question, the complete or implicit income of the consumer would be determined as follows:

When the customer works, she earns an hourly wage of $17.00, therefore when she works for 24 hours, she will earn:

=$17\times24

=$408

Also, when the customer  sells all the 17 units of the composite good, she will earn:

=$11\times18

=$198

Therefore, the customer's full income would be:

=$408+$198

=$606

To learn more about Trade-off

brainly.com/question/7072776

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6 0
1 year ago
Crigui Music produces 60000 CDs on which to record music. The CDs have the following costs: Direct Materials $13000 Direct Labor
gizmo_the_mogwai [7]

Answer:

$35,000 is the maximum amount that Crigui should pay

Explanation:

Total cost if manufactured internally;

Direct materials $13,000

Direct labor 15,000

Variable overhead 3,000

Fixed overhead 7,000

————

Total cost $38,000

Therefore, $38,000 - $3,000 (unavoidable cost) = $35,000

7 0
3 years ago
The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on Ju
omeli [17]

Answer:

Entries are given below

Explanation:

Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis

June 30, 2021 ( issuance of bonds)

                                                          DEBIT          CREDIT

Cash                                                 1,042,973

Bonds payable                                                     970,000

Premium on bonds payable                                 72,973

December 31, 2021 ( interest expense)

                                                            DEBIT          CREDIT

Interest Expense                               62,578

(1,042,973 x 12% x 6/12)

Premium on bonds payable               472    

Cash                                                                          63,050

(970,000 x 13% x 6/12)

June 30, 2022 (interest expense)

                                                           DEBIT            CREDIT

Interest Expense                               62,550

(1,042,973-472) x 12% x 6/12)

Premium on bonds payable               500    

Cash                                                                             63,050

(970,000 x 13% x 6/12)

5 0
3 years ago
Too much of a good or service is produced when there is a
Alexxandr [17]

Answer:

D

Explanation:

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue

4 0
3 years ago
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