DaaS is utilized for provisioning critical data on demand.

On September 1, 2021, Triton Entertainment borrowed $24,000,000 cash to fund a new Fun Park. The loan was made by Nevada Bank. T

ryzh [129]

Answer:

1.

September 1, 2021 Cash $24,000,000 Dr

Notes Payable $24,000,000 Cr

2.

December 31, 2021 Interest Expense $960,000 Dr

Interest Payable $960,000 Cr

3.

May 30, 2022 Interest Expense $1,200,000 Dr

Interest Payable $1,200,000 Cr

June 1, 2022 Notes Payable $24,000,000 Dr

Interest Payable $2,160,000 Dr

Cash $26,160,000 Cr

Explanation:

1.

The issuance of note against cash results in a debit to cash and a credit to a liability in account for notes payable.

2.

The adjusting entry will be made in accordance to accrual principle that matches the revenues and expenses relating to a certain period and record them in their respective period. The interest on note for 4 months from September to December belongs to 2021 and will be recorded as an expense and a payable on 31 december.

The interest expense for 4 months is = 24000000 * 0.12 * 4/12 = $960000

3.

The interest for the remaining 5 months will be recorded on the last day of note on May 30.

The interest for 5 months is = 24000000 * 0.12 * 5/12 = $1200000

On June 1, the note and the interest payable on note both will be paid and will be debited to close them from the books and cash will be credited.

8 0

3 years ago

A firm is considering purchasing two assets. Asset L will have a useful life of 15 years and cost $4 million; it will have inst

Andreyy89

Answer:

D. Asset S has $103,333 more in depreciation per year.

Explanation:

For computing the greater annual straight minus line depreciation first we have to determine the each assets depreciation expense which is shown below:

For Asset L

= (Original cost + installation cost - salvage value) ÷ (useful life)

= ($4,000,000 million + $750,000 - $0) ÷ (15 years)

= $316,666.67

For Asset S

= (Original cost + installation cost - salvage value) ÷ (useful life)

= ($2,000,000 million + $500,000 - $400,000) ÷ (5 years)

= $420,000

As we can see that the Asset S has high annual straight-line depreciation

And, the amount exceed is $103,333.33

6 0

3 years ago

Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide

abruzzese [7]

Answer with Explanation:

Following are the benefits of using departmental Income Statements:

Gives an understanding of where the company lacks efficiency
Helps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.
The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.
It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.
It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.

The above benefits makes the department income statements important for the managerial use.

4 0

4 years ago

A company uses a standard-cost system. The company prepared the following budget using normal capacity for the month of May: Dir

ExtremeBDS [4]

Answer:

$4,500 favorable

Explanation:

The computation of the budget (controllable) variance for May using the two-way analysis of overhead variances is shown below:

Variable overhead per labor hour os

= $72,000 ÷ 36000

= $2 per hour

Now

Budgeted overhead for actual production is

= (31,500 × $2) + $162,000

= $225,000

So,

Controllable variance is

= Budgeted overhead for actual production - Actual overhead

= $225,000 - $220,500

= $4,500 favorable

8 0

3 years ago

g The difference between a three-digit North American Industry Classification System (NAICS) industry and a six-digit NAICS indu

sashaice [31]

Answer:

A 3 digit code by NAICS represents the subsector of the type of business in America while a six digit code represents country level national industries.

Explanation:

The NAICS stands for North American Industry Classification. It is a standard used by the various federal statistical agencies to classify business for collecting, analyzing as well as publishing the statistical data which is related to the business economy of the US.

In the code of NAICS, a three digit industry is considered as a sub-industry of the two digit industry. Each of 3 digit code business are further divided into 4,5 or 6 digit code industries.

The six digit code used by NAICS is given to the national industries. It permits the firms to find the codes of their present customers and also helps them to find the code lists for the similar firms.

6 0

3 years ago