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skad [1K]
3 years ago
14

Melton Company sold some machinery to Addison Company on January 1, 2014. The cash selling price would have been $947,700. Addis

on entered into an installment sales contract which required annual payments of $250,000, including interest at 10%, over five years. The first payment was due on December 31, 2014. What amount of interest income should be included in Melton's 2015 income statement (the second year of the contract)
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer:

$79,247

Explanation:

Installment includes the interest and principal as well to be paid on equal proportion. It need to be separated to report in the financial statement. Installment amortization is used to calculate the principal portion and interest portion of each years installment.

Installment Sale Schedule

Year    Balance      Payment     Principal    Interest  

1         $947,700   $250,000   $155,230   $94,770 ( 947,700 x 10% )

2        $792,470   $250,000   $170,753   $79,247 ( 792,470 x 10% )

Interest of $79,247 should be included in  Melton's 2015 income statement.

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Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend o
kipiarov [429]

Answer:

a. October 4th

b. November 15th 2019

c. November 14th 2019.

d. December 13th, 2019 (Note: This is assumed based on the explanation below as it is not specifically stated in the question).

Explanation:

a. What date is the declaration date?

The declaration date is the date the announcement to pay the next dividend is made by the board of directors of a company. In this case, the declaration date is October 4th, 2019.

b. What date is the holder of record date?

The holder of record date refers to the cut-off date set by a company to ascertain the eligible shareholders that will receive the next dividend payment. In this case, the holder of record date is November 15th 2019.

c. What date is the ex-dividend date?

The ex-dividend date refers to date that a seller of stock is still eligible to receive dividend despite that the stock has already been sold to a by him. This is because it is the person that hold the security on the ex dividend date that will receive the dividend payment not the holder on the payment date. Generally, ex-dividend date is usually one business day before the record date. In this case,he ex-dividend date is November 14th 2019.

d. What date is the payment date?

The payment date refers to the actual day that eligible shareholders are paid the declared dividend by the company. It is usually a few weeks or month after the ex-dividend date. If we assumed to be a month, the payment date would be December 13th, 2019.

6 0
3 years ago
A farmer raises wheat and pays a portion of it as a tax that is collected by government agents and sent to a central storage fac
Olegator [25]

Answer:

REDISTRIBUTION                      

Explanation:

Redistribution of assets and income can be defined as social mechanism like taxes, education, healthcare, government services, political reform, fiscal policy, confiscation, separation or tort rule is the redistribution of wealth and income from some persons to others.

The phrase's meanings differ, based on private experiences, political philosophies and limited statistical usage. In politics, it is often said, probably referring to supposed transfers of wealth from those with more to those who have less.

3 0
3 years ago
The newly industrializing country that has competitive electronics and other light industries but which specializes in banking a
Lerok [7]

The country that is being described in the statement given above is Hong Kong as they are considered as a newly industrializing country in which they have the capabilities of competing in regards with electronics and to specialize in the category of trade and banking.

5 0
3 years ago
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity
natta225 [31]

Answer: e

Explanation :

A balance sheet is a statement of the financial position of a business that lists the assets, liabilities and owner's equity at a particular point in time. In other words, the balance sheet illustrates your business's net worth.

The balance sheet may also have details from previous years so you can do a back-to-back comparison of two consecutive years. This data will help you track your performance and will identify ways to build up your finances and see where you need to improve.

A balance sheet reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure . the balance sheet is divided into two sides (or sections). The left side of the balance sheet outlines all a company’s assets. On the right side, the balance sheet outlines the companies liabilities and shareholders’ equity. On either side, the main line items are generally classified by liquidity. More liquid accounts like Inventory, Cash, and Trades Payables are placed before illiquid accounts such as Plant, Property, and Equipment (PP&E) and Long-Term Debt. The assets and liabilities are also separated into two categories: current asset/liabilities and non-current (long-term) assets/liabilities.

3 0
3 years ago
Harper acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2014, for $243,700 in cash. The book
KonstantinChe [14]
One of the steps in solving this problem is this one:

As we know as shown above, the joournal entry for 2014 and 2015 will include the investment balance, increases and decreases to equity and intra-entity profits realized and deferred. Also the balance of the acquisition needs to be calculated.

Calculation of the book value of the purchase made as the book value of Company K times percent purchased:

400,000 * 0.40 = 160,000

Then, calculate the difference in the acquisition and the book value of the purchase:

210,000 - 160,000 = 50,000
5 0
3 years ago
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