OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.2 million. Interest is payable at maturity.Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
Interest rate Fiscal year-end Interest expense
12% December 31
10% September 30
9% October 31
6% January 31
Answers
Answer:
In accrual basis accounting, expenses are recorded in the period when their matching revenues are obtained.
In this case, even if the full interest will be paid at maturity, interest expense will still be recorded in each period according to the information that we are given in the question.
Interest expense to be recorded by December 31
5,200,000 * 0.12 = 624,000 / 2 = 312,000
Interest expense to be recorded by September 30
5,200,000 * 0.10 = 520,000 * 3/12 = 130,000
Interest expense to be recorded by October 31
5,200,000 * 0.09 = 468,000 * 4/12 = 156,000
Interest expense to be recorded by January 31
5,200,000 * 0.06 = 312,000 * 7/12 = 182,000
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An import restriction (tariff or quota) creates a net loss in welfare for the importing nation because:___________ a. Domestic production rises in the importing country b. Income is transferred from consumers in the importing nation to domestic producers c. Income is transferred from consumers in the importing nation to their government d. All of the above e. None of the above
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answers
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
Final answer:
In 2019, Tyrone and Akira can deduct $21,500 in home and home equity loan interest, and $2,000 of their investment interest, which adds up to a total deductible interest amount of $23,500.
Explanation:
In 2019, Tyrone and Akira can deduct the Home acquisition debt interest, Home equity loan interest (given it was for home improvements), and Investment interest expense to an extent.
Their Home acquisition debt interest and Home equity loan interest are fully deductible, giving them a total of $21,500 ($15,000 + $6,500) in deductible interest. The credit card interest is non-deductible.
As for the Investment interest expense, it can only be deducted up to the level of their net investment income. Therefore, of their $10,000 investment interest expense, only the $2,000 that corresponds to their net investment income is deductible in 2019. Any leftover deductible interest may be carried over to the next year.
So in total, they can deduct $23,500 ($21,500 + $2,000) in interest in 2019.
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Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200 = 400
Answers
Answer:
$73,600
Explanation:
A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph
The last unit will be 22nd unit .
Using learning curve table ,
Time required to build 22nd unit = 3125.49 hours
labour cost to build 22nd unit ( $20 per hour ) = $20 x $3125.49
labour cost to build 22nd unit = $62509.80
Using learning curve table ,
material and equipment cost to build 22nd unit = $11090.67
Therefore,
total cost to build the last unit = Labour cost + Material and equipment cost total cost to build the last unit = $62509.80 + $11090.67
total cost to build the last unit = $73600.47
Learning rate for labour hours ( L1) = Time for 2nd unit / Time for 1st unit
Learning rate for labour hours ( L1) = 4500/5000
Learning rate for labour hours ( L1) = 0.90
Learning rate for material and equipment usage
Learning rate for material and equipment usage = Material and equipment cost for 2nd item / Material and equipment cost for 1st item
Learning rate for material and equipment usage = 24000/30000
Learning rate for material and equipment usage = 0.80 or 80 %
Answers
Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.
Why is this the correct entry?
The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.
The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.
Find out more on accounts receivables at brainly.com/question/24871345.
Final answer:
The company should debit (increase) the Accounts Receivable account by $10,000 and credit (increase) the Service Revenue account by $10,000. This follows the accrual method of accounting, in which revenues and expenses are recorded when they are earned and incurred, respectively.
Explanation:
The correct entry to record this transaction, using the accrual method, involves two accounts: Accounts Receivable and Service Revenue. Here is the step-by-step process of recording this transaction.
- Debit (increase) the Accounts Receivable account by $10,000. This step is done because the company has provided a service and is now entitled to receive money (accounts receivable) from the customer.
- Credit (increase) the Service Revenue account by $10,000. The company has earned revenue due to the service that they performed. Revenue increases by credits in the accounting equation.
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Answers
Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.
Explanation:
There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price
Answers
Answer:
c. Internal Service Fund
Explanation:
Internal Service Fund -
It refers to the sum of amount required to track the motion of any goods and services from one department to another , is referred to as internal service fund .
The amount spend on the internal service fund is used to determine the complete cost of providing the services and goods .
For example , maintenance is an example of the internal service fund .
Hence , from the given information of the question ,
The correct answer is c. Internal Service Fund .