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swat32
3 years ago
8

On October 1, 2020, Waterway Inc. assigns $1,900,000 of its accounts receivable to Ottawa National Bank as collateral for a $1,1

14,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 6%. Prepare the October 1 journal entries for both Waterway and Ottawa
Business
1 answer:
nexus9112 [7]3 years ago
4 0

Answer:

Journal Entries

Waterway Inc.

October 1

Dr. Cash                       $1,076,000

Dr. Interest Expense   $38,000

Cr. Note payable         $1,114,000

Ottawa National Bank

October 1

Dr. Note Receivable   $1,114,000                    

Cr. Interest revenue   $38,000

Cr. Cash                      $1,076,000

Explanation:

Interest = $1,900,000 x 2% = $38,000

At the time of assigning the account receivable the finance charges is applicable the interest on the loan note will be recorded when it accrues. Interest expense as finance charges will be added to calculate the Note payable value for Waterway Inc. and Note receivable value for Ottawa National Bank.

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Salsk061 [2.6K]

This question is incomplete, I got the complete one from google as:

Output         Total cost

 0                       5

 1                        10

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 3                       15

 4                       24

 5                       40

If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5 units of output in the short run and exit in the long run. c. shut down in the short run and exit in the long run. d. produce 5 units of output in the short run and face competition from new market entrants in the long run

Answer:

Option D is correct- If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.

Explanation:

The fixed cost is $5, this indicates that when the market price is $16, the marginal cost is also $16.

When the 5th unit is produced, the total revenue received will be $80 while the total cost will be $40. This indicates that there will be a positive economic profit which will bring new firms in the long run.

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Answer:

100 adults and 50 students should attend

and,

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Explanation:

Given:

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For every 2 adults there must be 1 student

let the number of adults be 'x' and the number of students be 'y'

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we can write the above constraints mathematically as:

x + y = 150   ...............(1)

and,

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substituting the 'x' from 2 in the equation 1, we get

2y + y = 150

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Thus,

x = 2 × 50 = 100   (from equation 2)

Hence,

100 adults and 50 students should attend

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The maximum amount raised = $2 × 100 + $1 ×50 = $250

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