All categories

3 years ago

On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent interest.

Business

1 answer:

ankoles [38]3 years ago

8 0

a. Benz's Sandwich Shop interest income for Year 1 is equal to $400.

b. Benz's Sandwich Shop total receivables at December 31, Year 1 is equal to $10,400.

c. The loan receivable will be reported on Benz's Sandwich Shop Statement of Cash Flows under operating activities as an outflow of resources in the amount of $10,000.

d. Benz's Sandwich Shop interest income for Year 2 is equal to $200.

e. The total amount of cash that Benz's Sandwich Shop will collect in Year 2 from Mark Henry is $10,600.

f. On Benz's Year 2 Statement of Cash Flows, the loan and interest will be reported under Operating Activities as inflows in the total amount of $10,600.

g. The total amount of interest that Benz's Shop earned on the loan to Mark Henry is $600 ($10,000 x 6%).

Data and Calculations:

Amount of loan = $10,000

Interest rate = 6%

Months for Year 1 = 8 months (12 - 4)

Interest income for Year 1= $400 ($10,000 x 6% x 8/12)

Loan Receivable = $10,000

Interest Receivable = $400

Total receivable for Year 1 = $10,400 ($10,000 + $400)

Interest Income for Year 2 = $200 ($10,000 x 6% x 4/12)

Total Interest Income = $600 ($10,000 x 6%)

Thus, the interest is the income that Benz's receives for lending $10,000 to Mark Henry for a period of one year at 6%.

Learn more: brainly.com/question/19417091

You might be interested in

A small group characterized by intimate, long-term, face-to-face association and cooperation is a(n) __________. primary group r

uysha [10]

Answer:

The correct answer is letter "A": primary group.

Explanation:

Primary groups are the basis of societies. They are small groups of people in which their members come into direct contact. Primary groups are represented by families that where individuals learn how to be appreciated and loved. Primary group members share enduring relationships.

8 0

3 years ago

Henry is demonstrating his gross motor skills when he picks up cheerios from his high-chair tray.

mafiozo [28]

<span>This is incorrect. Henry is actually demonstrating fine motor skills. Gross motor skills are those skills that pertain to large movements like walking, balance, jumping, etc. Fine motor skills are those that pertain to fine manipulation like writing, picking up small objects (like the cheerrios), or tying a knot.</span>

8 0

3 years ago

John would like to move from the suburbs into the city, but the rent in the city is very high.john has found an apartment he rea

RSB [31]

John could either keep looking for an apartment that he can afford 100% of, or he could look for a roommate and go 50/50 on the monthly rent.

7 0

3 years ago

in what way are monetary and fiscal policies similar? group of answer choices they both target aggregate demand to overcome busi

Arisa [49]

Monetary and fiscal policies are similar as they both target aggregate demand to overcome business fluctuations.

Option A is correct.

<h3>How do monetary and fiscal policies work together?</h3>

Fiscal policy affects aggregate demand through changes in government spending and taxation. These factors affect employment and household income, which in turn affect private consumption and investment. Monetary policy affects the amount of money in the economy that affects interest rates and inflation.

<h3>Is fiscal policy the same as monetary policy?</h3>

Fiscal policy is a policy enacted by the legislative branch of government. It deals with taxation and government spending. Monetary policy is enacted by the government's central bank. Address changes in a country's money supply by adjusting interest rates, reserves, and open market operations.

Learn more about Monetary policy:

brainly.com/question/2417605

#SPJ4

4 0

1 year ago

Country A has great expertise in the production of planes and produces a large quantity of planes while country B has expertise

Shkiper50 [21]

Answer:

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Allocative efficiency occurs in efficient markets when goods, services or capital are distributed in a way that is efficient to all the parties involved.

When countries trade in the goods for which they have a comparative advantage in its production, all the parties in the trade gains

3 0

3 years ago