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lara31 [8.8K]
3 years ago
14

Kohl Company lent $49,587 to Hemingway, Inc, accepting Hemingway's 2-year, $60,000, zero-interest-bearing note. The implied inte

rest rate is 10%. Prepare Kohl's journal entries for the initial transaction, recognition of interest each year, and the collection of $60,000 at maturity.
Business
1 answer:
Nostrana [21]3 years ago
3 0

Answer:

Date     Account Titles                            Debit         Credit

            Notes Receivable                      $60,000

                   Discount on Notes Receivable             $10,413  

                   Cash                                                        $49,587  

             Discount on Notes Receivable  $4,959

                    Interest Revenue                                    $4,959  

             Discount on Notes Receivable $5,454

             ($49587+$4959)*10%  

                     Interest Revenue                                    $5,454

              Cash                                           $60,000

                     Notes Receivable                                   $60,000

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Goryan [66]

Answer:

Cash provided by operating activities $39,650

Explanation:

The computation of the cash provided by operating activities under the direct method is as follows:

Sales Revenue     $30,600

Decrease in Account Receivable $4,600

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Increase in Interest Receivable - $1,150

Cash provided by operating activities $39,650

We simply applied the above sequence so that the correct value could come

And, the same is to be considered

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Having had no prior knowledge of the market for his product sweater, what approach did Jack McCarthy of Ugly Christmas Sweaters
telo118 [61]

Answer:

When any company wants to sale their product without prior knowledge of the market then it's a disaster.

First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.

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Answer:

The people in an economy have $25 million in money. There is only one bank where they deposit their money and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?

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