All categories

3 years ago

Problem 8-2A Record notes payable and notes receivable (LO2)

Business

1 answer:

Finger [1]3 years ago

5 0

Answer:

1. Prepare the journal entries on October 1, 2015, to record the issuance of the note.

Journal entry for Precision Castparts

Dr Cash 40,600,000

Cr Notes payable 40,600,000

Journal entry for Midwest Bank

Dr Notes receivable 40,600,000

Cr Cash 40,600,000

2. Record the adjustment on December 31, 2015.

Journal entry for Precision Castparts

Dr Interest expense 812,000

Cr Interest payable 812,000

Journal entry for Midwest Bank

Dr Interest receivable 812,000

Cr Interest revenue 812,000

3. Prepare the journal entry on September 30, 2016, to record payment of the notes payable at maturity

Journal entry for Precision Castparts

Dr Notes payable 40,600,000

Dr Interest expense 2,436,000

Dr Interest payable 812,000

Cr Cash 43,848,000

Journal entry for Midwest Bank

Dr Cash 43,848,000

Cr Notes receivable 40,600,000

Cr Interest receivable 812,000

Cr Interest revenue 2,436,000

You might be interested in

1. Which of the following is NOT a general characteristic of a service? A. Production and consumption are simultaneous. B. The s

Snezhnost [94]

Answer:

B. The service can be transported

Explanation:

Service relates to providing an intangible form of work which is performed for others to yield a benefit or satisfy a want. An important aspect of a service being, it is intangible or something which cannot be touched or felt.

For example, service provided by a doctor or services provided by a waiter at a hotel. Services are consumed, the moment they are produced. For instance, services of a waiter arise when a customer enters the hotel and a want for the service is created.

Services cannot be resold as for instance the receiver performs the same service to another, the provider would change.

As services are intangible, they cannot be stored since they arise only when a want arises and are consumed immediately.

Thus, the correct option is B. The service can be transported.

5 0

3 years ago

Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnershi

tensa zangetsu [6.8K]

Answer:

=$59,000.00

Explanation:

Original investments:

Xavier: $50,000.00

Yolanda $ 100,000.00

Allowances:

Xavier: $ 34,000.00

Yolanda : $ 26,000.00

Income at $120,000.00

Xavier allocation will be:

Calculating interest on the original investment

Xavier =20/100x $50,000.00 =$10,000.00

Yolanda=20/100 x$100,000.00 = $20,000.00

Total interest on original investments = $30,000.00

Total allowances = $34,000+$26000=$60,000.00

Shareable income= $120,000.00- ($30,000+$60,000)

= $30,000

each gets $15,000.00

Xavier will get $ 15,000 + $ 10,000 +$ 34,000

=$59,000.00

5 0

3 years ago

Debra, Fang, and Raj were on a team at their engineering company. Though Debra had the most experience of the three, she did not

kumpel [21]

Answer:

C) shared leadership

Explanation:

i found these option

A) lateral B) authentic C) shared D) bridge E) intergroup

so correct answer is shared because Shared leadership is often team-oriented with work, as leadership can drive an individual with significant knowledge, skills and abilities to the problem facing the team at a particular time. Shared leadership is critical when tasks are interdependent, complex, and require creativity.

7 0

3 years ago

The following data were accumulated for use in reconciling the bank account of Kaycee Sisters Inc. for August 20Y9:

Stels [109]

Answer:

Cash account reconciliation

Balance: $27,060

- Bank charges: ($40)

+ Error in recording check: $360

Reconciled cash account: $27,380

Bank account reconciliation:

Balance: $28,460

+ Deposit in transit: $4,410

- Checks outstasnding: ($5,490)

Reconciled bank account: $27,380

5 0

3 years ago

In the case of a small country, producer surplus Group of answer choices is not changed by tariffs or quotas. increases the same

rusak2 [61]

Answer:

increases the same amount with tariffs and equivalent quotas.

Explanation:

In Economics, a surplus refer to the amount by which the quantity supplied of a good exceeds the quantity demanded of the same good.

A producer surplus is the amount by which a buyer is willing to pay for a particular good minus the cost of producing the same good.

On the other hand, a consumer surplus is the amount by which a buyer is willing to pay for a particular good minus the amount the buyer actually pays for it.

In the case of a small country, a producer surplus increases (raises) the same amount (an amount a buyer is willing to pay for a good minus the cost of producing the good) with tariffs and equivalent quotas.

A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.

Generally, tariffs can reduce both the volume of exports and imports in a country. In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.

4 0

3 years ago