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tatuchka [14]
3 years ago
6

On September 1, 2012, Daylight Donuts signed a $200,000, 8%, six-month note payable with the amount borrowed plus accrued intere

st due six months later on March 1, 2013. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2012. In recording the payment of the note plus accrued interest at maturity on March 1, 2013, Daylight Donuts would
a. Debit interest expense, $5,333.
b. Debit interest payable, $2,667.
c. Debit interest expense, $2,667.
d. Debit interest expense, $8,000.
Business
1 answer:
Varvara68 [4.7K]3 years ago
3 0

Answer:

c. Debit interest expense, $2,667.

Explanation:

The adjusted journal entry is shown below:

Interest expense A/c Dr $2,667

         To Interest payable A/c $2,667

(Being accrued interest adjusted)

The interest expense is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $200,000 × 8% × (2 months ÷ 12 months)

= $2,667

The 2 months is calculated from December 31, 2012 to March 1, 2013

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West County Bank agrees to lend Drake Builders Company $400,000 on January 1. Drake Builders Company signs a $400,000, 6%, 6-mon
viva [34]

Answer:

The answer is b.Cash ,000 Notes Payable ,000

Explanation:

The exact entry Drake Builders Company has to record in its accounting book for the proceeds received from the issuance of the note is:

1st January

Dr Cash                         400,000

Cr Note Payable          400,000

As at the time the note is issued, no interest expenses has been incurred, all the answer with Interest expenses can be eliminated.

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6 0
3 years ago
Two stockbrokers, in clear violation of the rules of their employer, sold worthless stocks to unsuspecting customers. There was
ZanzabumX [31]

Answer: Yes they did.

Explanation:

Apparent Authority refers to a scenario where a Agent is assumed to have the power to act on behalf of a Principal regardless of if said authority had not being expressly given whether implicitly or otherwise.

It is worthy of note that this power is only valid if the third party in the transaction assumes from the conduct of the agent, that they have such powers to act.

It is stated in the text that there was no question that the brokers had the actual or implied authority to sell the stock meaning that the Principal had not done enough to show that the agents did not have the Authority to act as they did. For this reason, they can indeed be sued under the Principle of Apparent Authority.

7 0
2 years ago
Sparks Corporation has a cash balance of $19,500 on April 1. The company must maintain a minimum cash balance of $16,000. During
Ganezh [65]

Answer:

Cash borrow  = 10500

so correct option is a. $10,500

Explanation:

given data

Ending cash balance = $16,000

Beginning cash balance = $19,500

expected cash receipts = $68,000

Cash disbursements = $82,000

solution

we know that Ending cash balance is express as

Ending cash balance = Beginning cash balance + Cash receipts - Cash disbursements + Cash borrow   .............................1

we get here Cash borrow put here value

$16,000 = $19,500  + $68,000 - $82,000 + Cash borrow

solve it we get

Cash borrow  = 10500

so correct option is a. $10,500

4 0
3 years ago
Melanie has a balance of $1700 on a credit card with an apr of 24.2%, compounded monthly. about how much will she save in intere
slamgirl [31]
She will save about $267.27 ($2160.24 - $1892.97) in interest over the course of a year if she transfers her balance to a credit card with an apr of 10.8%, compounded monthly. This problem can be solved using the compounding interest formula which stated as A = P*(1+i)^n. A is the amount affected by the compounding interest, i is the interest rate, and n is the period of time. You must find the amount using the 24.2% and 10.8% compounding interest and find the difference between them.
4 0
3 years ago
Read 2 more answers
The price of a large pizza decreased from $18.00 to $14.00. As a result, the quantity demanded of skateboards increased from 330
natta225 [31]

Answer:

a. The percentage change in pizza prices is -25.00%.

b. The percentage change in pizza prices is 5.88%.

c. The cross elasticity of demand for pizza and skateboards is -23.53%.

We follow these steps to arrive at the answer.

<h3>a. Percentage change in price of pizza</h3>

The percentage change in price of pizza using the midpoint formula is:

percentage change in price = ({\frac{P_{2} - P_{1}}{Average price})*100

Average Price = \frac{P_{2} + P_{1}}{2}

In this question, P₁ is $18 and P₂ is $14

Substituting the values in the formula above we get,

Average Price = \frac{14 + 18}{2}

Average Price = \frac{32}{2}

Average Price = 16

percentage change in price = (\frac{14 - 18}{16})* 100

percentage change in price = (\frac{-4}{16}) * 100

percentage change in price = -25%

<h3>b. Percentage change in quantity demanded of skateboards</h3>

The percentage change in quantity of skateboards using the midpoint formula is:

percentage change in quantity = (\frac{Q_{2} - Q_{1}}{Average Quantity})*100

In this question, Q₁ is 330 and Q₂ is 350

Substituting the values in the formula above we get,

Average quantity = \frac{Q_{2} + Q_{1}}{2}

Average quantity = \frac{350 + 330}{2}

Average quantity = 340

percentage change in quantity = (\frac{350 - 330}{340})*100

percentage change in quantity = (\frac{20}{340})*100

percentage change in quantity = 5.8823529%

<h3>c. Cross Elasticity of demand of skateboards and pizza</h3>

We calculate the cross elasticity of demand as follows:

Cross Elasticity Demand = \frac{percentage change in quantity of skateboards}{percentage change in price of pizza}

Cross Elasticity Demand = \frac{0.058823529}{-0.25}

Cross Elasticity Demand = -0.235294118

Cross Elasticity Demand = -23.53%

7 0
3 years ago
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