On December 1, 2018, ABC signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2019?
Answers
The amount of cash should be $315,000 will be needed to payback.
Calculation of the amount of the cash needed:
At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
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Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
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Assignment I1. On March 1, 2020, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2020.a) Chart of accounts Universal GarageChart of Accounts100 ASSETS 110 CURRENT ASSETS 111 Cash 112 Accounts Receivable 114 Supplies 116 Prepaid Rent 117 Prepaid Insurance 120 PLANT ASSETS 121 Land 123 Machinery 123.1 Accumulated Depreciation-Machinery 125 Office Equipment 0.1 Accumulated Depreciation-Office Equipment200 LIABILITIES 210 CURRENT LIABILITIES 211 Account Payable 213 Salaries Payable 216 Interest Payable 220 NON-CURRENT LIABILITIES 221 Long-term Bank Loan 300 OWNER'S EQUITY 301 Tahir, Capital 302 Tahir, Drawings 303 Incomes Summary 400 REVENUES 401 Fees Earned 410 Other Income 500 EXPENSES 501 Salary Expenses 502 Supplies Expenses 503 Rent Expenses 504 Insurance Expenses 505 Depreciation Expenses 506 Interest Expenses 510 Miscellaneous Expenses b) TransactionsMar 1 Received the following assets from its owner, Tahir: Cash....................................... Br, 8,300 Supplies ................................. 2,000 Office Equipment................... 10,000 2 Borrowed Br 5,000 from Dashen Bank 3 Paid Br 1,800 for rent on a building leased for business purposes 3 Purchased welding and other repair machinery for Br 3,600 cash 4 Paid Br 200 for a radio advertisement 8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 13 Paid weekly salary Br 1,200 16 Received Br 4,400 from services rendered on cash 20 Paid weekly salary Br 1,200 20 Received Br500 royalties for idle repair machinery it leased to other businesses 20 Delivered service on credit, Br 6,00021 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers 23 Received Br 5,000 additional cash investment from its owner 24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 26 Purchased supplies for Br 800 cash 27 Paid Br 100 for customer entertainment and other items27 Paid weekly salary Br 1,200 31 Paid Br 500 for electricity and other utilities consumed during the month 31 Received Br 4,200 cash from credit customers 31 Paid Tahir Br 1,800 for personal uses Required: a) Journalize the above transactions in a two-column journal b) Post the journal entries to “T” accounts c) Prepare and complete a worksheet based on the following additional information i. Cost of supplies remained unconsumed on Mar 31 is Br 900 ii. The amount paid on Mar 3 is for a three-month rent iii. The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively iv. Universal Garage usually pays Br 1,200 for employee's salary every saturday for a six-day work week ended on that day v. Interest on bank loan accrued but not paid on March 31 total Br 100 d) Prepare financial statements for the month e) Journalize and post adjusting entries f) Journalize and post closing entries g) Prepare post-closing trial balance
The Williamston Wingnuts minor league hockey team is considering building a new arena in Downtown Williamston. They have decided they will only build the arena if it will be Net Present Value positive based on 5 years of cash flows. The team’s accounting department has compiled the following costs: $2,000,000 for the land the arena would be built on. They bought this land in 2010. Construction costs of $28,000,000 $50,000 for a marketing study conducted last year to determine whether more fans would come to the games if they built a new arena. $50,000 for new signage in front of the building and around the city that will only be needed if the arena is built. $500 for a trip taken by team management to see the Portland (Mich.) Puckheads’ new arena at a game last season to gather design ideas. $50,000 for street lights in the parking lot and on Grand River Ave. that will only be needed if the arena is built. $100,000 in additional Net Working Capital will be needed at the beginning of the project, 60% of which will be recovered at the end of the project.What is the Total Year 0 cash flow for this project?
Answers
Answer:
Bacccialy and a circle on every card that has a multiple of 5 storage in your room and the black and white and black kitten will also have the same as ad the perimeter on a separate page with the instagram same on the same floor and there is is a approximate usage electricity bill and some of them will not have been paid been paid for while we have not been able link to the mass of tin is it for 100 and the black bin bags etc for the late reply night and last of all Rail season tickets to London increased by the time we get back from amazon then please let let me go and collect it from amazon on Sunday and then send it back again as I am now back in the stock office on Monday so I can tell the other people who have a look at our page page are interested in the our website ready to for us the other ones in with our and a couple other bits of paper with the name Bob
Explanation:
Follow the story and the first one will is a approximate usage approximate date of the line for the late submission date of your submission for the late reply yes to the first day of the contract for the first day in September as the application will be made on the 1st September at your latest address so that we may be able link to the
Answers
Answer:
total ending WIP value 39,334.20
transferred-out 432.078.00
Explanation:
Ending work in proces inventory
we multiply the equivalent units by the cost per equivlent unit
materials 2,200 x 15.26 = 33,572
converion 940 x 6.13 = 5,762.2
then, we add them to get thetotal value of the ending WIP
total ending WIP value 39,334,2
for the transferred out, we add both equivalent cost as this are complete.
And multiply by the whole amount 20,200
trasnferred out: 20,200 x (15.26 + 6.13) = 432.078
B. Treat the loss as a subsequent event and adjust the 2019 financial statements to record the loss on uncollectible accounts.
C. Treat the loss as a subsequent event and provide a footnote about the loss in the 2019 financial statements.
D. File a lawsuit against the customer in hopes of collecting some of the money owed to the client.
Answers
Answer:
The correct answer is Option B.
Explanation:
Based on IAS 10 Events after the Reporting Period, subsequent events can be an adjusting event or non-adjusting event. If it is an adjusting event, it means an event after the reporting date before the audited financial statements are signed that provides further evidence of conditions that existed at the reporting date. However, non-adjusting events are events after the reporting date that are indicative of a condition that arose after the reporting date, this requires disclosure in the financial statements while for adjusting events, the financial statements are adjusted for condition that arose after the reporting date.
The declaration of the customer as bankrupt is an adjusting event since it affects the receivable collection, hence the need to adjust it as uncollectible,
Answers
Answer:
(a) see curve on attachment
(bi) consumer surplus= $4
(bii) see diagram on attachment
(biii) utility = 2
(ci) u(0,1) = 1
(c) utility gain = 1.6
Explanation:
Answers
Answer:
Cost of Equity 8.794%
Explanation:
We can solve for the cost of equity using the CAPM
risk free 0.0291
premium market = market rate - risk free 0.071
beta(non diversifiable risk) 0.88
Ke 0.09158 = 9.158%
Or using the gordon dividend grow model
D= 3.57
return = ?
growth 0.0325
stock = 68.91
we solve for return:
return = 0,08430670 = 8.43%
Now we have two diferent rates, so we can do an average to get the best estimate cost of equity
(9.158 + 8.43)/2 = 8.794%
Final answer:
The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.
Explanation:
Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.
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phenomena is associated with high
unemployment?
A. Economic Growth
B. Economic Stability
C. Economic Depression
Answers
Answer:
C. Economic Depression
Explanation:
Economic Depression is when an economy goes into financial turmoil/ struggles.