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Juli2301 [7.4K]
2 years ago
14

On October 1, 2018, Mills Company borrowed $131,000 cash on a one-year note that required Mills to pay 5 percent interest and $1

31,000 principal, both on September 30, 2019. Assuming the note is paid when due in 2019, what is the debit to interest expense when recording the payment of the note?
Business
1 answer:
valina [46]2 years ago
6 0

Answer:

the amount that debited to interest expense is $4,912.50

Explanation:

The computation of the amount that debited to interest expense is as follows:

Here we calculate it from Jan to Sep 30, the number of months would be 9 months

So, the amount of interest expense is

= $131,000 × 5% × 9 months ÷ 12 months

= $4,912.50

Hence, the amount that debited to interest expense is $4,912.50

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An outside broker locates a seller for a buyer representative's client. In this instance, the outside broker is acting as
zmey [24]

Answer:

He is acting as a sub-agent. The sub-agent, just like the representative of the buyer, is an agent and owes a duty to care and act as an agent for the buyer representive.

4 0
3 years ago
The Marketing Control Statement is a valuable statement for marketers because it only utilizes costs that the marketer can contr
pishuonlain [190]

Answer: True

Explanation:

The Marketing Control Statement is quite beneficial to marketers as it avoids fixed costs and shows them the variable and programmed costs both of which can be controlled. This enables them to know what they need to and can change in a way that they can come up with an optimal marketing mix to ensure profitability.

It is also a very uncomplicated statement to prepare which further ingratiates it to marketers who would like to avoid all the jargon of income statements.

3 0
3 years ago
During the year, Hamlet Inc. paid $22,000 to have bond certificates printed and engraved, paid $170,000 in legal fees, paid $9,0
xenn [34]

Answer:

$481,000

Explanation:

Bond issue costs are either direct or indirect costs:

  • direct costs include underwriting fees, listing fees, professional fees, compliance costs and other costs related to the IPO or APO (secondary issues), e.g printing costs
  • indirect costs include underpricing costs (IPO pricing is too low) and loss of proprietary information

Total bond issue costs = $22,000 + $170,000 + $9,000 + $280,000 = $481,000

5 0
3 years ago
A dealer bought some tires for 6500. the tires were sold for 9500. making 50 on each tire. how many tires were involved?
VMariaS [17]
Cost price = 6,500
Selling price + profit = 9500
Profit gained = 9,500 - 6,500 = $3000
Number of tires bought = 3000/50 = 60
The dealer bought 60 tires.

6 0
3 years ago
The Vogt corporation paid a dividend of $4.20 on its stock in the year just ended. If the dividends are projected to grow at a r
Jet001 [13]

Answer:

cost of equity = 13%

Explanation:

With the info given, we will use cost of equity formula from Dividend Growth Model. THis is given by:

k_e=\frac{D_1}{P_0}+g

Where D_1 is the next year dividend or D_1 = D_0(1+g)

P_0 is current stock price

g is the growth rate

Since D_0 (dividend this year) is 4.20 and g = 6.4%  or 0.064, we can calculate D_1:

D_1=D_0(1+g)=4.2(1+0.064)=4.47

Current share price is 68, so we can now calculate cost of equity:

k_e=\frac{4.47}{68}+0.064=0.13

Hence,

cost of equity = 13%

8 0
3 years ago
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