Answer:
Debit to interest expenses for $259
Explanation:
Entry of Payment
Date Account Title and Explanation Debit Credit
Mar 31. Note Payable $51,873
Interest expenses $259
($51,873 * 6% * 30/360)
Cash $52,132
(TO record payment)
Answer:
Debiting Interest Receivable for $400 and crediting Interest Revenue for $400
Explanation:
Based on the information given if the company.has a note receivable from Jewel Co for the amount of $80,000 in which The note matures in 5 years and bears interest of 6% which means that when Rose is preparing financial statements for the month of June. Rose should make an adjusting entry by :
Debiting Interest Receivable for $400
crediting Interest Revenue for $400
[($80,000 × .06)/12 ]
Answer:
$280
Explanation:
Given that Sales = $3,060
Minus: Cost of goods sold = $1,800
Gross Profit = $1,260
Minus: Operating expenses is = $600
Thus Operating profit is = $660
Minus: Interest = $146
Profit before tax = $514
Tax at 40% = $514 * 0.4 = $206
Net income (Income after-tax) = $308
Minus: Preferred stock dividend = $28
Earnings available to common stockholders = $280
Hence, in this situation, the correct answer is $280 per share
Answer: $1531
Explanation:
The corporation's tax basis in the property received in the exchange will be the addition of Tristan's Tax basis and the gain that's recognized on exchange by Tristan.
The gain realized will be:
= $1,570 - $1,255
= $315
Boot received = $276
Therefore, lower of $315 or $276 is $276.
The corporation's tax basis in the property received will then be:
= $1255 + $276
= $1531
