1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erma4kov [3.2K]
3 years ago
7

On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,

which is hurting Shoemaker’s business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $600,000 to its supplier using a 12-month, 11% note.
Required:
Record the following transactions for Shoemaker Corporation.
1. The loan of $600,000 and acceptance of the note receivable on April 1, 2021.
2. The adjustment for accrued interest on December 31, 2021.
3. Cash collection of the note and interest on April 1, 2022.
Business
1 answer:
baherus [9]3 years ago
3 0

Answer:

1.

Date                  Account title                                      Debit                    Credit

April 1, 2021      Note receivable                             $600,000

                         Cash                                                                         $600,000

2.

Date                  Account title                                      Debit                    Credit

Dec 31, 2021     Interest receivable                       $49,500

                         Interest revenue                                                          $49,500

<u>Working:</u>

From the date of the loan to December is 9 months so interest must be calculated for these 9 months so that the interest for 2021 is known:

= 600,000 * 11% * 9/12 months

= $49,500

3.

Date                  Account title                                      Debit                    Credit

April 1, 2022     Cash                                                $666,000

                          Interest receivable                                                      $49,500

                          Interest revenue                                                          $16,500

                          Notes receivable                                                      $600,000

<u>Working</u>

Interest revenue:

Calculated on the remaining 3 months of the loan:

= 600,000 * 11% * 3/12 months

= $16,500

You might be interested in
Boyle Company makes fine jewelry that it sells to department stores throughout the United States. Boyle is trying to decide whic
Ksivusya [100]

Answer:

Explanation:

a)

Fixed Costs of Bracelet A

Advertising Costs   5,000$                                      

Annual depreciation 5,000$                                      

Total Fixed Costs   10,000$                

Fixed Costs for Bracelet B

Advertising Costs   3,000

Annual depreciation 4,000

Total Fixed Costs $ 7,000        

b)

Variable Costs for Bracelet A

Cost of Materials per unit $ 10                                            

Cost of labor per unit $ 15

Total Variable Costs per unit $25

Variable Costs for Bracelet B

Cost of Materials per unit $20

Cost of labor per unit $15

Total Variable Costs per unit $35                          

c) Avoidable costs

Avoidable Costs Bracelet A

Cost of Materials per unit $10

Cost of labor per unit $ 15

Avoidable Costs Bracelet B

Cost of Materials per unit $20

Cost of labor per unit $15

7 0
3 years ago
There may be a maximum balance requirement for a savings account.<br> True<br> False
luda_lava [24]

Answer:

true

Explanation:

For example, if a bank account has a $100 minimum balance requirement, you want to make sure that you don't let your balance fall to $99.99 or less.

4 0
3 years ago
The Texas state _________ commissioner is an elected official responsible for administration and oversight of state-owned lands
kramer

Answer:

Land.

Explanation:

In the U.S. State of Texas, the Texas General Land Office is an agency of the Texas state. This agency is responsible for overseeing lands and mineral rights resources that are under the ownership of the state. This agency is headed by the Land Commissioner of the Texas State. The constitutional purpose of the agency was to "supervise, execute and employ all acts that touch the public lands of Texas.

8 0
4 years ago
An investment of $10,000 today is estimated to return $11,500 a year from now. The $11,500 is called the ________ of the investm
zheka24 [161]
The answer is future-value
8 0
3 years ago
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
elena55 [62]

Answer:

Cost of land= 564,500

Explanation:

Cost of land = Purchase price - Salvage + Demolition cost + Land preparation

= 540,000 - 22,000 + 39,000 + 7,500

= 564,500

5 0
3 years ago
Other questions:
  • A local citizen donated land with a fair market value of $500,000 to the county government. The donor had paid $550,000 for the
    14·2 answers
  • Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that B
    10·1 answer
  • Based on what you have learned in the lesson and the assignment, write two or three sentences describing how short-term and long
    9·2 answers
  • Companies in the "sunset" industries develop environment ally sound substitutes
    12·1 answer
  • One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness intelligence and creativity. Am
    11·1 answer
  • Which financial document is used to look at the past &amp; see how much you made &amp; where it went?
    6·1 answer
  • Inventory Control and Planning Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of
    9·1 answer
  • If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000, then:a. this is impos
    13·1 answer
  • 1. Tells whether a company can pay all its current liabilities if they become due immediately 2. Measures a company's success in
    6·1 answer
  • Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His da
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!