Answer:
Interest Expenses $35,640, Interest payable $35,640
Explanation:
Notes payable = $594,000
Months passed till September = 9
Interest on notes accrued for 9 months = (594,000*8%*9/12) = $35,640
Adjusting Entry
Journal Entry Debit Credit
Interest Expenses $35,640
Interest payable $35,640
Answer:
30600 less 25 000 = 5600
increase in net income
Explanation
1400 units 1000 units
sales 224 000 160 000
(1400*160) (1000*160)
variable costs (106 400) (48 000)
(1400*76) (1000*48)
contribution margin 117 600 112 000
fixed costs (87 000) (87 000)
net operating income 30 600 25000
Which of the following statements is generally true about change in the workplace ? a ) Most people accept change easily . b) Smart companies can avoid change altogether. c) Change in the workplace fairly infrequently d) Individuals can learn to manage the change in their lives.
So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.
Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25
