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Veseljchak [2.6K]
3 years ago
13

On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent

ries have been recorded, ABC's adjusting entry at December 31 would include a:________.
a. debit to Interest Expense of $3,000.
b. debit to Interest Expense of $2,250.
c. debit to Interest Expense of $1,000.
d. debit to Interest Expense of $750.
Business
1 answer:
scZoUnD [109]3 years ago
7 0

Answer:

c. debit to Interest Expense of $1,000.

Explanation:

The adjusting entry is as follows:

Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000

     To Interest payable $1,000

(Being the interest expense is recorded)

Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities

Therefore the correct option is c.

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Inkal Co. was formed on January 1, 2017 as a wholly owned subsidiary of a US corporation. Sinkal's functional currency was the s
defon

Answer:

It would decrease the net assets by $60,800

Explanation:

The computation of the translation adjustment for 2017 is shown below:

For common stock

= Issued amount × (revised exchange rate - exchange rate)

= $1,000,000 × (0.42 - 0.48)

= -$60,000

For dividend

= Dividend paid × (revised exchange rate - exchange rate)

= $20,000 × (0.42 - 0.46)

= -$800

For net income

= Net income × (revised exchange rate - exchange rate)

= $80,000 × (0.42 - 0.42)

= $0

So, it would decrease the net assets by $60,800 ($60,000 + $800)

7 0
3 years ago
Ace Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outs
REY [17]

Answer:

b. $50,000 in total

Explanation:

Preference shareholders: The preference shareholders are that shareholders who receive the divided before equity shareholders

The computation of the annual dividend is shown below:

= Number of shares × price per share × rate

= 10,000 shares × $100 × 5%

= $50,000

The annual dividend for preference shareholders will be computed by applying the number of shares, the price per share, and the rate.

5 0
3 years ago
Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets
Pavel [41]

Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets include all of the following, EXCEPT <em>staying away from those emerging markets where it is impractical to modify the company's business model to  accommodate local circumstances.</em>

Explanation:

<em>Staying away from those emerging markets where it is impractical to modify the the company's business model to accommodate local circumstances</em> is not the best because in the long run the institution will be forced to conform with their business model which could change their mission and activities entirely. Therefore it should work on how it can please the market in a way so it can feed it at least.

#learnwithbrainly

4 0
3 years ago
Explain the measures of customer service that are influenced by the structure of the distribution network.
Nikitich [7]

Answer:

1. Response time or Time Response

2. Product variety or variety of the products

3. Availability

4. The Customer experience

5.The Order visibility

6. Returnability

Explanation:

Below is the Explanation of the measures of customer service that are influenced by the structure of the distribution network.

We have 6 measures of customer service that are influenced by the structure of the distribution network and they are:

1.Response time can be defined as the time between when a customer places an order and when the customer receives the delivery.

2. Product variety can be seen as the number of different products that a customer wish and desires from the distribution network.

3. Availability can be defined as the probability or likelihood of a company or an organisation to have a product in stock when a customer order arrives or when a customer places an order.

4.Customer experience can be seen as the the ease that occur when a customer place and receive their order.

5. Order visibility can be defined as the ability of the customer to track their own order from the time of placement to delivery.

6.Returnability can be defined as the ease with which a customer return merchandise or product that they are unsatisfied with and the strength or the ability of the network to handle such returns.

4 0
3 years ago
Dennisport Corporation has an acid-test ratio of 1.7. It has current liabilities of $56,000 and noncurrent assets of $87,000. Th
ra1l [238]

Answer: $33600

Explanation:

Current liabilities = $56,000

Noncurrent assets = $87,000

First and foremost, we should note that:

Acid-test ratio = Current Assets / Current liabilities

Therefore,

1.7 = Current Assets / $56,000

Current assets = $56000 × 1.7

= $95,200

Also,

Current ratio = Current Assets / Current liabilities

Therefore,

2.3 = Current Assets / $56,000

Current assets = $56,000 × 2.3

= $128,800

Then, the inventory and prepaid expenses will be:

= $128,800 - $95,200

= $33,600

3 0
2 years ago
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