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expeople1 [14]
3 years ago
15

Sheridan Company assigns $4570000 of its accounts receivables as collateral for a $2.94 million loan with a bank. The bank asses

ses a 2% finance charge on the loan amount and charges interest on the note at 7%. What would be the journal entry to record this transaction
Business
1 answer:
ad-work [718]3 years ago
4 0

Answer and Explanation:

The journal entry to record the given transaction is shown below;

Cash $2,881,200

Interest Expense ($2,940,000 × 2%) $58,800

      To Notes Payable $2,940,000

(Being the cash and the interest expense is recorded)

Here the cash and interest expense is debited as it increased the asset and expenses while on the other hand the note payable is credited as it also increased the liabilities

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What term refers to the total compensation that an employee earns before their employer deducts taxes and withholdings?
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"Gross pay"

Gross pay is <em>before </em>taxes and withholdings, net pay (aka take-home pay) is what is left over <em>after </em>taxes/etc are taken out.

7 0
3 years ago
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If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the follow
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Answer:

A. increases the balance of an expense account

Explanation:

The following effect can be shown through an example -

If we increase the credit portion of an adjusting entry to increase the balance of a liability account, the effect of the debit portion will be an expense.

For example -

When wages expenses incurred but not paid, at that moment, a liability will increase due to that effect. The journal entry to record that transaction is -

Wages expense     Debit

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Therefore, the adjusting entry increases the liability as well as the expenses.

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3 years ago
The central problem in product-oriented layout planning is?
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Answer: The minimizing the imbalance in the workloads among workstations.

Explanation:

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects.

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3 years ago
Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock is
shutvik [7]

Answer:

Option c. is correct

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A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.

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3 years ago
Which of the following equations is valid? Select one: a. Total surplus = Value to buyers - Amount paid by buyers b. Consumer su
Over [174]

Answer:

D. Producer Surplus = Total surplus - Consumer surplus

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Producer surplus is obtained by subtracting economic cost from the market selling price. Consumer surplus refers to the difference between the willingness to pay and the market price.

Since Total surplus = Consumer surplus - Producer surplus, then Producer surplus can be obtained by subtracting Consumer surplus from Total surplus.

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