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mihalych1998 [28]
3 years ago
7

Consider the following note payable transactions of Cabal Video Productions.

Business
1 answer:
Whitepunk [10]3 years ago
5 0

Answer:

1. The Journal entries are as follows:

(a) On May 1, 2018

Equipment A/c Dr. $96,000

       To Notes payable         $96,000

(To record the Issuance of Note Payable)

(b) On December 31, 2018

Interest expense A/c Dr. $3,840

      To interest payable               $3,840

(To record the accrue interest at the end of the year)

Time period: May 1, 2018 to December 31, 2018 = 8 months

Interest expense:

= $96,000 × 0.06 × (8/12)

= $3,840

(c) On May 1, 2019

Notes payable A/c Dr. $12,000

Interest payable A/c Dr. $3,840

Interest expense A/c Dr. $1,920

          To cash                               $17,760

(To record the first installment on notes payable)

Time period: January 1, 2019 to April 30, 2019 = 4 months

Interest expense:

= $96,000 × 0.06 × (4/12)

= $1,920

(d) On December 31, 2019

Interest expense A/c Dr. $3,360

      To interest payable               $3,360

(To record the accrue interest at the end of the year)

Time period: May 1, 2019 to December 31, 2019 = 8 months

Interest expense:

= ($96,000 - $12,000) × 0.06 × (8/12)

= $84,000 × 0.06 × (8/12)

= $3,360

2. Liability at December 31, 2019:

= $3,360

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Answer:

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FILL IN THE BLANK. The manager of a(n) ______ center does not have control over revenue or the use of investment funds.
irina1246 [14]

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Explanation:

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1 year ago
What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, as
kkurt [141]

Answer: When a government purchase increases during a war, be it a local war or a world war. it means that it's savings has reduced, therefore the trade balance will fall. And if the purchase is done to import more goods into the country, the trade balance becomes negative, leading to a deficit.

The exchange rate of the currency will reduce because the country the government is making more currency to be available and surplus, by increasing it's purchase. When they is excess currency in the world market, the currency reduces it value. In a world war, or local war, the exchange rate may not actually reduce because, it will be difficult for the country to have enough money to make its currency to be available in the world market.

7 0
3 years ago
Suppose the government enacts a price floor on milk, which leads to a surplus in the market. How will the government then attemp
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Answer:

Price Floor led Excess Supply can be solved by : Preserving goods Buffer Stock ; or processing goods to increase their shelf life (in case of perishable goods like Milk)

Explanation:

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3 0
3 years ago
Adams Company has employed a bookkeeper who is inexperienced. On December 28, after reviewing the records for the year, you disc
adell [148]

Answer:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Explanation:

First we have to reverse the wrong journal entry which has been made by the inexperienced bookkeeper in the Adams Company accounts:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

Now we have to record the correct journal entry in the accounts of Adam Company in respect of account settlement with supplier which is given as follow:

                                      Debit                  Credit

Trade payable                 $300

Cash                                                           $300                              

6 0
3 years ago
Read 2 more answers
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