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Furkat [3]
2 years ago
12

On January 2, 2022, McClelland Company purchased a machine and signed a noninterest-bearing note in payment. The note matures in

4 years and requires McClelland to pay $70,000 at maturity. McClelland also had the option to purchase the the machine in cash from a different vendor for $56,505. At what amount should the machine be recorded upon purchase
Business
1 answer:
tresset_1 [31]2 years ago
6 0

The amount that McClelland Company should record the machine upon purchase is<u> $56,505.</u>

<h3>Recording the transaction</h3>

The proper way to record the transaction based on U.S. GAAP polices is to debit the Machine account with the price of $56,505 as this represents the market value of the machine.

The company should also credit the Notes payable account with $70,000 being the value of the note acquired. A debit will go to the Discount on Note account for $13,495 which is the difference between the note and value of machine.

Find out more on recording Notes Payable at brainly.com/question/17073934.

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AAA's inventory turnover ratio is 20.00 based on sales of $28,400,000. The firm's current ratio equals 4.16 with current liabili
marissa [1.9K]

Answer:

= 17.15 days (approx)

Explanation:

Given:

inventory turnover ratio = 20

Current ratio = 4.16

Current liabilities = $820,000.

Cash and Marketable securities = $657,096

Net sales = $28,400,000

Per day sale = ?

Calculation:

Current ratio = Current assets / current Liabilities

              4.16 = Current assets / $820,000

4.16 x $820,000 = Current assets

$3,411,200 = Current assets

Inventory turnover ratio = Net sales / Average Inventory

                                  20 =  $28,400,000 / Inventory

        $28,400,000 / 20 = Inventory

                   $1,420,000 = Inventory

Average Receivable =  current assets - Cash and Marketable securities -Inventories

                   = $3,411,200 - $657,096 - $1,420,000

Average Receivable = $1,334,104

Outstanding daily sales = (Average receivables / Net sales )Number of days in a year

= $1,334,104 / $28,400,000)365

= 17.15 days (approx)

4 0
2 years ago
Policies that require countries to privatize state-run firms, end subsidies, reduce tariff barriers, shrink the size of the stat
Nataliya [291]
Answer is Structural adjustment. 

Structural adjustment is arrangements of progression; obliged nations to privatize state-run firms, end endowments, diminish duty boundaries, recoil size of state, welcome remote venture; answer for monetary problem of less created countries, state had excessively turn in market so the state ought to pull back, IMF took after the possibility that a littler state is better for the economy (less direction, unhindered commerce, diminished estimation of cash)
8 0
3 years ago
What is the most difficult unit of the 1040EZ tax form to fill out? Why?
Fantom [35]
Filling out a form is neither too easy nor too difficult. There are parts in the form where you get really confused, but you can eventually figure it out. Following instructions is really important when filling out a form especially when it's your first time. For those who have been filling it out, it won't be difficult anymore unless the form underwent revisions. 
7 0
3 years ago
Cost of goods sold
never [62]

Answer:

The correct option is d.

Explanation:

Cost of goods sold: The cost of goods sold is that cost which sells the product at the cost price. It is directly related to the production level.

Example: purchase price, raw material cost, labor cost, etc.

It includes administration costs but not include research and development cost.

Neither it is found on the balance sheet, it shows on the income statement.

Nor, it records partly completed goods because it has come under work in progress.

So, the A,B, and C are incorrect statements while D is the correct statements.

Hence, the correct option is d. Cost of goods sold is the total product cost for the units sold during a period.

8 0
2 years ago
Read 2 more answers
Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures we
daser333 [38]

Answer:

Swifty Corporation

The actual interest for Swifty Corporation is:

$2,418,300

Explanation:

a) Data and Calculations:

Expenditures were

on March 1,          $6,380,000

on June 1,            $5,270,000

on December 31 $8,350,000

Borrowings:

on January 1 on a 5-year, 12% note = $3,240,000  Interest =   $388,800

Note payable, 10%, 3-year =                $6,380,000  Interest =  $638,000

Note payable, 11%, 4-year =               $12,650,000  Interest = $1,391,500

Total interest for Swifty Corporation = $2,418,300

b) Computation of interests:

12% note = $3,240,000 * 12% = $388,800

10% note = $6,380,000 * 10% = $638,000

11% note = $12,650,000 * 11% = $1,391,500

5 0
2 years ago
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