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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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Hector can deduct the cost of the premium for AGI if Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.

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3 years ago
all of the company's earnings kept rather than distributed to stockholders decreased by dividends decreased by purchases of land
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Retained Earnings are increased by net income, decreased by dividends, sometimes called earned capital and all of company's earnings kept rather than distributed to stockholders.

Are Retained Earnings the Same as Profits?

Profits do not deduct dividend payments from a company's profit, whereas retained earnings do. This is the major distinction between retained earnings and profits. Profits may suggest a corporation has a positive net income, whereas retained earnings, depending on the number of dividends given to shareholders, may show a company has a net loss.

Why retained earnings is important?

Retained earnings can assist a business raise the value of its stock, ensuring organizational sustainability, and providing funding for crucial tasks like R&D and expansion without raising debt.

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2 years ago
________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesi
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3 years ago
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3 years ago
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Costs that are incurred to produce two or more products at the same time are called Joint costs.

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