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kirill115 [55]
3 years ago
13

On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p

aid $330,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 10% to Calloway. The present value of the lease payments is $330,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021
Business
1 answer:
mestny [16]3 years ago
5 0

Answer:

Dr Interest receivable $29,000

Cr Interest revenue $29,000

Explanation:

Preparation of the appropriate interest entry on December 31, 2021

December 31, 2021

Dr Interest receivable $29,000

Cr Interest revenue $29,000

[($330,000-$40,000)*10%]

($290,000*10%)

(To record Interest)

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Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular
rosijanka [135]

Answer:

Record of transaction is given below

Explanation:

given data

Selling price of goods =  $900

Cost of goods sold = $590

solution

we get here Record of transaction in Rita Company that is

Inventory accounts   Dr   $900

Account payable    Cr      $900

and

Record of transaction in Linus Company is

Account receive able  Dr  $900

Sales revenue              Cr  $900

and

Cost of goods sold    Dr   $590

Inventory                    Cr    $590

4 0
3 years ago
The following information is for Ayayai Corporation as of December 31, 2017.
Sergeeva-Olga [200]

Answer:

         Flint Corporation current assets section of Balance Sheet

Particulars                                                                      Amount

Cash ($23,500 + 21,100)                                        43,600

Less: Restricted for plant expansion                    <u> 23,500</u>     <u>21,100</u>

Trading Securities                                                                     9,700

Accounts receivable                                               73,300    

Less: Allowance for bad debts                               <u>3,700</u>       69,600              

Interest receivables (19,600*7%*9/12)                                      1,029    

Inventories

Finished goods                                                                          33,300

Work in Progress                                                                        13,000  

Raw materials                                                                             <u>59,600</u>

Total Current Assets                                                                 <u>186,229</u>

4 0
3 years ago
Explain how growing personal income is related to economic conditions.
NISA [10]

Answer:

see below

Explanation:

Personal income is the total earning an individual gets from wages, investments, bonuses, dividends, profits, or other ventures.  It is the sum of a household income. Personal income is calculated per period, usually one year.

Economic conditions refer to the prevailing state of a country or region's economy.  Economic conditions are ever-changing and are influenced by business cycles of expansions and contraction, government fiscal and monetary policies, macroeconomic factors, and global factors.  Governments and investor use indicators to tell the state of the economy

Economic conditions impact people's and business income. Government policies and global economics influence the level of economic activities. The expansion period has increased economic activities are leading to increased incomes. At contraction, business activities decline, resulting in reduced income.

7 0
2 years ago
ABC company issued 3000 shares of stock for $5 per share and issued 5000 shares for land valued at $10,000. How much cash did AB
stellarik [79]

Answer:

The cash received by ABC company from the issuing of stock is $15,000.

Explanation:

It is given that ABC company issued 3000 shares of stock for $5 per share.

The cash received by ABC company from the issuing 3000 shares of stock is

Cash=3000\times \$5

Cash=\$15,000

It is also given that ABC company issued 5000 shares for land valued at $10,000. It means ABC company received land instead of cash. So, total cash received by ABC company from the issuing of stock is $15000

Therefore, the cash received by ABC company from the issuing of stock is $15,000.

8 0
3 years ago
Explain why employers are considered buyers of skills and employees sellers of skills in the labour market.
raketka [301]
The employers look for potential employees that they think would be a good fit and have good qualities.
8 0
3 years ago
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