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4 years ago

The stated interest rate is the rate quoted in the bond contract used to calculate the cash payments for interest.

1 answer:

8 0

That statement is true

A stated interest rate is the return of investment that is not compounded by the interest accumulation throughout the years.
In general, a stated interest rate will give us a lower amount of return compared to effective annual interest rate that compound the accumulation throughout the years,

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The adjusted trial balance of Indigo Corporation at December 31, 2017, includes the following accounts: Retained Earnings $16,65

kobusy [5.1K]

Answer:

$13,971

Explanation:

An income statement indicates the profit or loss a business makes in the financial period. Profits or loss is realized by subtracting expenses from revenue.

The revenue for Indigo Corporation is $35,644,

Expenses

Salaries and Wages Expense $13,785

Insurance Expense $1,799

Rent Expense $3,872

Supplies Expense $1,413

Depreciation Expense $804

Total expenses $21,673

Income will be

=$35,644 - $21,673

= $13,971

Retained Earnings and Dividends are part of company profits. They are not business income or expenses.

6 0

3 years ago

You are given the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; margina

masha68 [24]

Answer:

See below

Explanation:

1. The net cash after-tax cash flow effect of the preceding information of using the indirect method.

First, we need to calculate the pretax income.

Pretax income = Sales - Expenses other than depreciation - depreciation expense

Pretax income = $260 - $140 - $50 = $70

Also,

Tax expense = 35% × pretax income $70 = $24.5

Therefore, the indirect method would be;

Pretax income

$70

Less:

Tax expense

($24.5)

After tax income

$45.5

Add:

Depreciation expense

$50

After-tax cash flow

$95.5

Direct method

After tax cash operating income

[($260 - $140 - $50) × (1 - tax rate 35%)]

$45.5

Add :

Depreciation expense

$50

After tax cash flow

$95.5

5 0

3 years ago

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,000

elena-14-01-66 [18.8K]

Answer:

b) $28,500.

Explanation:

The computation of the net realizable value of receivables is shown below:

As we know that

Net realizable value = Gross account receivable - allowance for doubtful debts

where,

Gross account receivable is

= Beginning balance of the account receivable + credit sales - written off amount - collections

= $71,000 + $190,000 - $1,750 - $227,700

= $31,550

And, the allowance for doubtful debts is

= Beginning balance of allowance for doubtful debts - written off + allowance needed

= $2,900 - $1,750 + $190,000 × 1%

= $3,050

So, the net realizable value is

= $31,550 - $3,050

= $28,500

hence, the correct option is b. $28,500

7 0

3 years ago

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

valkas [14]

Answer:

The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.

The company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. At the end of a period, if required adjusting entry, the adjusting entry:

Debit Interest expense and Credit Interest Payable

3 0

3 years ago

Bellandro Brewery recently became certified as an ISO 14001 company. Which of the following criteria would decision makers evalu

solong [7]

Answer:

environmental improvement plans at the brewery

Explanation:

6 0

3 years ago