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tatuchka [14]
2 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]2 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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Answer: Statement A

Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.

Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.

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From the above explanation we can conclude that statement A is correct.

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Calculate the ROE using the Strategic Profit Model for a company with the following data: Profit margin = 12% Total asset turnov
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Answer:

≅ 21.8%

Explanation:

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Therefore,

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7 0
3 years ago
On January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment
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Answer:

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= $‭6,555,000‬

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7 0
2 years ago
A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%
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Answer:

3.4%

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9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

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Select sales companies offer of shares of stock in itself to anyone who is willing to pay $60 per share is
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Select Sales Companies offer of shares of stock in itself to anyone who is willing to pay $60 per share is a public offering. A public offering is the offering of securities of a company to the public. Generally, the securities are to be listed on a stock exchange. Businesses usually go public to raise capital in hopes of expanding.

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