joe, a hair dresser, offers students a discount price on haircuts. this form of pricing is an example of

On November 1, Vacation Destinations borrows $1.57 million and issues a six-month, 9% note payable. Interest is payable at matur

Keith_Richards [23]

Answer:

(a) To Record the issuance of the note

Debit Cash $1.57 million

Credit Notes payable $1.57 million

(To record notes payable issuance)

(b) Adjusting entry for interest expense at December 31:

Debit Interest expense $23,550

Credit Interest payable $23,550

(To record interest expense on notes payable as at Dec 31)

Explanation:

Note payable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest expense on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $1.57 million x 9%/12 x 6 months = $70,650.

Total interest expense to the Company as at December 31 is therefore $70,650 / 6 months x 2 months = $23,550.

3 0

3 years ago

Question 23 of 40

aivan3 [116]

Answer: i think it’s C

4 0

3 years ago

The Assembly Department of One Roof, Inc., manufacturer of computers, incurred $300,000 in direct material costs and $70,000 in

Papessa [141]

Answer:

D) $116.67 per EUP

Explanation:

To find out the equivalent unit of production (EUP) for conversion costs we have to divide the total conversion costs by the equivalent units produced:

EUP conversion costs = $70,000 / 600 units = $116.67 per EUP

The EUP for direct materials would = total costs direct materials / equivalent units produced = $300,000 / 1,000 units = $300 per EUP

Both fully completed units and partially completed units are expressed in terms of equivalent units of production.

6 0

3 years ago

Credenza Industries is expected to pay a dividend of $1.70 at the end of the coming year. It is expected to sell for $62 at the

Brrunno [24]

$3.56 is the capital gain

Explanation:

Credenze industries

The Dividend = 1.70 , Cost of capital = 9% , Selling price =62 , calculation of Expected capital gain =?

In order to calculate the Present market price (PM) ,

Let the PM (Present market value) = x

The Cost of equity = the change in market price + dividend

$9 \% \text { of } x=(62-x)+1.70$

=> X = $ 58.44 .

Therefore, the Capital Gain that has been gained is = $ 3.56

6 0

3 years ago

Which statement concerning lower-of-cost-or-net-realizable-value (LCNRV) is incorrect? LCNRV is an example of a company choosing

liberstina [14]

Answer:

The LCNRV basis is justified because of a decline in the selling price of the inventory item

Explanation:

The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.

These costs includes cost of purchase, freight, Insurance cost during transit etc.

Subsequently, inventory is to be carried at the lower of cost or net realizable value.

This is justified where there is a decline in the selling price of inventory as it ensures that the amount stated in the books is fairly representative of the amount that may be realized from the sale of the inventory items.

6 0

3 years ago