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ycow [4]
2 years ago
9

Ames, Inc., has $1 million of notes payable due June 15, Year 2. At the financial statement date of December 31, Year 1, Ames si

gned an agreement to borrow up to $1 million to refinance the notes payable on a long-term basis. The financing agreement called for borrowings not to exceed 80% of the value of the collateral Ames was providing. At the date of issue of the December 31, Year 1, financial statements, the value of the collateral was $1.2 million and was not expected to fall below this amount during Year 2. In its December 31, Year 1, balance sheet, Ames should classify the notes payable asShort-Term Obligations, Long-Term ObligationsA. $0, $1,000,000B. $40,000, $960,000C. $200,000, $800,000D. $1,000,000, $0
Business
1 answer:
Delvig [45]2 years ago
7 0

Answer: B. $40,000, $960,000

Explanation:

The long term obligation will be 80% of the collateral value which will be:

= 80% × $1.2 million

= 0.8 × $1,200,000

= $960,000.

Therefore, the short term obligation will be:

= $1,000,000 - $960,000

= $40,000

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telmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balan
nignag [31]

Answer:

Direct material= $51,000

Explanation:

Giving the following information:

Beginning inventory= $20,000

Ending inventory= $27,000.

Raw materials purchases during the month totaled $63,000.

$3,000 consisted of raw materials classified as indirect materials.

First, we need to calculate the total raw material used in production:

Raw material used= beginning inventory + purchases - ending inventory

Raw material used= 20,000 + 63,000 - 27,000= 54,000

Now, the direct material used:

Direct material= 54,000 - 3,000= $51,000

7 0
2 years ago
What type of consumer debt is the largest in the united states
ankoles [38]

Hi !!

The largest consumer debt concerns home mortgage.

it has gone up to 9,14 trillions.

In second place comes student loans

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7 0
3 years ago
Seamus has to conduct market research on the viability of his​ company's new product. while planning his research he needs to de
Snowcat [4.5K]

A hypothesis, which is the theory that will be tested and either explained or disproved during the course of the research.

7 0
3 years ago
In some instances accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit in
Zepler [3.9K]

Answer:

1   $12.80

2   $16.10

3   $13.00

4   $9.20

5   $15.90

Explanation:

The unit value of inventory is to be valued  the lower of cost price and net realizable value.

Cost is the original purchase price while the net realizable value is the estimated selling price less of costs to complete and costs to sell as computed in the attached file.

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3 0
3 years ago
Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to atten
Damm [24]

Answer: $0

Explanation:

From the question, we are informed that Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada and that Nicole is a sophomore and Naomi is a freshman.

We are further told that Nick and Katelyn's AGI is $202,000. Based on the above scenario, their allowable American opportunity tax credit will be $0. This is because when AGI is more than $180,000 for such taxpayers, the credit is being phased out.

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2 years ago
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