Answer: See explanation
Explanation:
The following can be calculated from the information given:
Total Asset Fair Value which will be:
= Land + Building + Equipment
= 73200 + 268400 + 97600
= $439200
Recorder Amount will now be:
Land = 73200 / 439200 × 384300
Land = 64050
Building = 268400 / 439200 × 384300
Building = 234850
Equipment = 97600 / 439200 × 384300
Equipment = 85400
Answer: The correct answer is c. increase in Discount on Notes Payable for $2,100.
Explanation: 6% of $35,000 for a year is $2,100. From the facts in the question, the Bank deducted the interest in advance, this means the net cash York Construction Company got was $35,000 - 2,100 = $32,900 but note that this does not change the principal amount obligation the Company is obliged to pay the bank, which remains $35,000. What the Company needs to do is to recognize the $35,000 as Notes Payable (Debit Cash and Credit Notes Payable) and recognize a Discount on Notes Payable of $2100 (Debit Discount on Notes Payable and Credit to Cash). Subsequently, based on the 1-year tenor, the Company would unwind the discount to finance charge / interest expense as $2,100 / 12 = $175 monthly (Debit Interest expense; Credit Discount on Notes Payable).
Answer:
Petty cash refers to a certain amount, which is kept by the company to spend it on small items related to the business.
Explanation:
The Journal entry is given below:
Answer:
c. 42.6%
Explanation:
Average total assets = $410,000+$257,000/2
Average total assets = $667,000
Average total assets = $333,500
Net income = $112,000
Interest expenses = $30,000
Return on total assets = Net income + Interest expenses / Average total assets
Return on total assets = $112,000 + $30,000 / $333,500
Return on total assets = 0.42388060
Return on total assets = 42.39%
Answer:
B) (I) is false, (II) true.
Explanation:
Even though short term rates (Treasury bills) are much more volatile than long term rates (Treasury bonds), it is normal that the rate of return on Treasury bills is lower than the rate of return on Treasury bonds. Some of the reasons why Treasury bills have such a low rate of return is that they are very liquid investments and they don't pay any periodic interest.
