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puteri [66]
3 years ago
11

On January 1, 2015, Johnson Company purchased a delivery truck for $72,000, paying $7,200 cash and financing the rest with a 4 y

ear, 5% note, with monthly payments of $1,411.
Required:

a. Complete the loan amortization schedule below for the payments made on February 1 and March 1.
b. Prepare the journal entry for the purchase on January 1.
c. Prepare the journal entry for the 2nd loan payment on March 1
Business
1 answer:
Kaylis [27]3 years ago
5 0

Answer and Explanation:

The computation is shown below:

a. Amortization schedule

<u>Date       Payment          Interest          Principal      Loan Balance</u>

Jan 1                                                                          $64,800

                                                                                ($72,000 - $7,200)

Feb 1           $1,411            $270             $1,141            $63,659

                          ($64,800 × 5% ÷ 12)

Mar 1           $1,411           $265             $1,146            $62,513

                             ($63,659 × 5% ÷ 12)

b. The journal entry is

Truck - equipment Dr $72,000

        To cash  $7,200

         To Note payable $64,800

(Being the purchase is recorded)

c. The journal entry is

Note payable $1,146

Interest expense $265

        To Cash $1,141

(Being loan payment is recorded)

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Correcting a market with an externality through taxation is _________ correcting it through a set output target from command and
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Correct question:

Correcting a market with an externality through taxation is _________ correcting it through a set output target from command and control.

Group of answer choices

A. less efficient than

B. as efficient as

C. either more or less depending on the elasticity of demand

D. more efficient than

Answer:

Correcting a market with an externality through taxation is (A) less effective than correcting it through a set output target from command and control.

<h3>Correcting a market with taxation:</h3>
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  • Cigarette and alcohol taxes, for example, are raised on a regular basis to discourage their consumption and limit their adverse impacts on unconnected third parties.
<h3>Command and control strategies:</h3>
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<h3>Reason -</h3>

As it is stated above Correcting marketing is more effective than correcting manufacturing through taxation.

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Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-ca
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3.2= 14000000/Total assets

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Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope
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Answer:

(a). Depreciation for 1st year= $24,000

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