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mestny [16]
3 years ago
15

A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this eve

nt is A. debit Cash, $6,120 credit Notes Receivable, $6,120B. debit Accounts Receivable, $6,120 credit Notes Receivable, $6,000 Credit Interest Receivable, $120C. debit Notes Receivable, $6,060 credit Accounts Receivable, $6,060D. debit Accounts Receivable, $6,120 credit Notes Receivable, $6,000Credit Interest Revenue, $120
Business
1 answer:
Dafna1 [17]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

On November 21,

Note amount = $6,000

Period = 60-day

Interest rate = 12%

When Note is not paid by the market at maturity, then

The Accounts Receivable Account is debited with the Par Value of Note plus interest income and credited Notes Receivables $6,000 and Credit Interest Revenue $120.

Therefore, the journal entry is as follows:

Accounts Receivable A/c     Dr. $6,120

To Notes Receivables                              $6,000

To Interest Revenue                                 $120

(To record the note)

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Jose's monthly parking fee for april was $150; for may it was $10 more than april; and for june $40 more than may. His average m
boyakko [2]

Jose's monthly parking fee for April was $150; for many, it was $10 more than April and for June $40 more than May. His average monthly parking fee was<u> $166 </u>for these 3 months

The month is the unit of time used in the calendar and is approximately the length of the month's natural orbital period. The words moon and moon are related. The traditional concept was born from the cycle of the phases of the moon. Such a lunar month (“Lunar month”) is a lunar month and lasts about 29.53 days.

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3 0
1 year ago
An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i
Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

PresentValue=\frac{Coupon}{r}

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = \frac{170}{0.09} = $1,888.89

4 0
3 years ago
How physical asset valuation (PAV) and research and
stellarik [79]

Answer:

We'll take this one after the other.

A. First Physical Asset Valuation (PAV) refers to the act of writing up or writing down the carrying value of an organisations assets in its balance sheet.

In simple terms, it refers to increasing upwards or downwards the value of an organisations asset in its balance sheet.

When assets are written down, the following are likely to occur:

Critical changes to an organization’s business model or strategy, such as termination of the business and  loss of a regulatory licence;

A significant reduction in the cash flow or bottom line of the business;

when the long term growth rates, interest rates or other financial factors such as prices or value of currencies, upon which a business valuation based decline, this impacts the valuation of an asset negatively.

   

B. Research and  Development (R&D)

R&D refers to all the studies, scientific investigations and experiments carried out to enable the discovery and creation of a new or innovative product or service that is more efficient and effective.  

       

The reason there is a risk associated with R&D is that there are usually many elements of uncertainty.  

The ideas being tested are usually novel and have not been tried before.  

Some of the risks associated with R&D are:

the possibility that the new product will fail in the market;

a new product or service that is does not work

the possibility of cost creep. That is a situation where the cost of the R&D outweighs the potential profit from the product or service.

Cheers!

6 0
3 years ago
Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this
3241004551 [841]

Answer:

Invariably, the cost of the product will rise. A relatively increase in supply parts directly influences the price of a product.

6 0
3 years ago
Alpaca Corporation had revenues of $300,000 in its first year of operations. The company has not collected on $20,000 of its sal
madam [21]

Answer: Option (b) is correct.

Explanation:

Given that,

Revenues = $300,000

Merchandise it purchased = $75,000

Salaries paid = $14,000

Owners invested = $23,000

Borrowed on a five-year note = $23,000

Interest paid = $3,000

Paid for a two-year insurance policy = $6,800

Income tax rate = 9%

Gross Margin = Revenues - Cost of Goods Sold

                       = $300,000 - $75,000

                       = $225,000

Profit before tax = Gross Margin - Salaries - Insurance payment - Interest

                          = $225,000 - 14,000 - 3,400 - 3,000

                          = $204,600

Net Income = Profit before tax - Tax at 9%

                    = $204,600 - 18,414

                    = $186,186

6 0
3 years ago
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