Determine how much interest expense the company will include in the income statements and the amount of the liability the company will report in the balance sheets for this note for 2021 and 2022. (Do not round intermediate calculations. Round your answers to the nearest whole dollars.) 2021 2022 Interest expense $2,904 $3,252 Liability amount $27,104 $23,852
Answers
Answer:
To find the interest expense, first get the present value of the note.
2021 interest 2022 Interest
Present value = 35,000 / (1 + 12%)³ = 12% * (24,912 + 2,989)
= $24,912 = $3,348
2021 interest is added because
Interest = 12% * 24,912 it is now part of the liabilities.
= $2,989
2021 Liability
= Present value of Note payable + Interest for the year
= 24,912 + 2,989
= $27,901
2022 Liability
= 27,901 + 3,348
= $31,249
Figures are different from yours as yours lacks the complete details so I used a similar question.
The interest expense in the income statements and the liability amount for the balance sheets for this note for 2021 and 2022 are:$2,904 and $27,104 for 2021$3,252 and $23,852 for 2022
Interest Expense for 2021:
$2,904 Interest Expense for 2022: $3,
252 Liability Amount for 2021: $27,
104 Liability Amount for 2022: $23,852
We know that;Interest = Principal × Rate × Time Where,
Interest = Interest Expense Principal = Liability Amount Rate = Rate of Interest per year Time = Time in years Let the Principal amount for this note be P.
The interest rate is not provided in the question but is required for calculating the Principal.
Hence, we will use the following formula to calculate the interest rate:
Interest = Principal × Rate × Time Rate = Interest / (Principal × Time)
Substituting the values;
For 2021:Interest = $2,904
Principal = $27,104
Time = 1 year
Rate = 2904 / (27104 × 1)
Rate = 0.107 or 10.7% (approx)
Therefore, the Principal amount is:
P = Liability Amount - 150 (transaction fees)
P = $27,104 - $150P = $26,954
The interest expense for 2021 can now be calculated as:
Interest Expense = Principal × Rate
Interest Expense = $26,954 × 0.107
Interest Expense = $2,890 (approx)
The liability amount for 2022 can be calculated by subtracting the Principal repaid from the Liability Amount in 2021.
The Principal repaid can be calculated by subtracting the interest expense in 2021 from the total payment made in 2021.
Total Payment in 2021 = Interest Expense + Principal repaid Total Payment in 2021 = $2,904 + Principal repaid
Let the Principal repaid in 2021 be p.
P + Interest - 150 = Total Payment in 202 1 P + $2,904 - 150 = $27,104 P = $24,350
Therefore, the Principal repaid in 2021 = $24,350 - $150 = $24,200
The Liability Amount for 2022 can now be calculated as:
Liability Amount for 2022 = Liability Amount in 2021 - Principal repaid in 2021 Liability Amount for 2022 = $27,104 - $24,200 Liability Amount for 2022 = $2,904
The Principal for the note in 2022 can be calculated as follows:
P = Liability Amount - 150
P = $23,852 - $150
P = $23,702
Now, the interest expense for 2022 can be calculated as:
Interest Expense = Principal × Rate
Interest Expense = $23,702 × 0.137
Interest Expense = $3,250 (approx)
Therefore, the interest expense in the income statements and the liability amount for the balance sheets for this note for 2021 and 2022 are:$2,904 and $27,104 for 2021$3,252 and $23,852 for 2022
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Related Questions
On April 11 of the current year, Zack Corporation had a market price of $48 per share of common stock. Its par value was $10 per share. For the previous year, Zack paid an annual dividend of $3.90 per share. Zack's gross revenues and net income was $5,000,000 and $2,500,000, respectively. The dividend yield for Zack Corporation would be:_________a) 8%.b) 0.8%.c) 39%.d) None of these choices are correct.
Answers
Answer:
8%
Explanation:
Dividend yield is a measure of business performance, used by investors which compares dividend paid by a stock to its market share.
Given the above information,
Dividend yield = $3.90/$48 × 100 = 8.13%
On January 1, 2020, Scottsdale Company issued its 11% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $$3,385,058 to yield 9%. Scottsdale uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. The 12/31/23 Premium on Bond Payable balance is:
Answers
Answer:
$269,153
Explanation:
Dr Cash 3,385,058
Cr Bonds payable 3,000,000
Cr Premium on bonds payable 385,058
premium amortization year 1 = ($3,385,058 x 9%) - $330,000 = $304,655 - $330,000 = -$25,345
premium amortization year 2 = ($3,359,713 x 9%) - $330,000 = -$27,626
premium amortization year 3 = ($3,332,087 x 9%) - $330,000 = -$30,112
premium amortization year 4 = ($3,301,975 x 9%) - $330,000 = -$32,822
premium's balance = $269,153
On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight payments of $20,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows:
Period Present value of ordinary annuity of 1 at 11% Present value of annuity in advance of 1 at 11%
7 4.712 5.231
8 5.146 5.712
On Bart's December 31, 2005 balance sheet, the note payable to Fell was:
a. $114,240
b. $104,620
c. $94,240
d. $102,920
Answers
Answer: c. $94,240
Explanation:
On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.
Note payable value = Present value of seven $20,000 payments
= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.
= 20,000 * 4.712
= $94,240
These are true or false!! Please help!!
1. A need is something that you desire to have because someone else has one.
2. Food, clothing, and shelter are examples of basic wants.
3. One of the problems in economics is that wants are unlimited.
4. Goods and services are produced through the use of economic resources.
5. There are only two kinds of economic resources: human and capital.
6. Labor is another name for human resources.
7. Some resources, such as clean air and water, are limited.
8. Scarcity is a problem that is faced by individuals and businesses but not by government
9. Economic decision making is important to businesses and governments but not to
individuals.
10. Economic decision making is a process requiring four important steps.
Answers
Answer:
I'm just going to write T-True n F)-False
1 F-
2 T
3 T
4 T
5 F-
6 T
7 T
8 T
9 F-
10 I'm sorry i don't know about this
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 520,000 $ 385,000 $ (135,000 ) ANC Corporation 470,000 520,000 50,000 Totals $ 990,000 $ 905,000 $ (85,000 ) Long term: Drake Corporation $ 520,000 $ 580,000 $ 60,000 Aaron Industries 700,000 680,000 (20,000 ) Totals $ 1,220,000 $ 1,260,000 $ 40,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Answers
Answer and Explanation:
1. The adjusting entry is
Net unrealised holding gain or loss $45,000 ($85,000 - $40,000)
To Fair value adjustment $45,000
(being net unrealized holding gain or loss is recorded)
2. In the income statement, the amount that should be reported is zero as the net unrealized gain or loss would be reported as an other comprehensive income also it is a part of the stockholder equity
Luis has an obligation to pay a sum of $3,000 in four years from now and a sum of $5,000 in six years from now. His creditor permits him to discharge these debts by paying $X in two years from now, $1000 in three years from now, and a final payment of $2X in nine years from now. Assuming an annual effective rate of interest of 8%, find X
Answers
Answer:
The value of X is 2455.77
Explanation:
Given the data in the question;
annual effective rate of interest of 8%, = 0.08
Now, we discount all the ash flows to present value, so we get;
3000×[tex]\frac{1}{(1 + 0.08)^{4} }[/tex] + 5000×[tex]\frac{1}{(1 + 0.08)^{6} }[/tex] = X×[tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + 1000×[tex]\frac{1}{(1 + 0.08)^{3} }[/tex] + 2X×[tex]\frac{1}{(1 + 0.08)^{9} }[/tex]
2,205.089 + 3,150.84 = 793.83 + X( [tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + [tex]\frac{1}{(1 + 0.08)^{9} }[/tex] )
5355.929 - 793.83 = X( 0.8573 + 1.0004 )
4,562.099 = X( 1.8577 )
X = 4,562.099 / 1.8577
X = 2455.77
Therefore; value of X is 2455.77
You bought an old car a couple of years ago for $1,000 and put about $5,000 of parts and labor into improving it. You sold it yesterday for $3,000. a. How does this sale affect GDP? GDP will increase by $3,000 as a result of this transaction. increase by $4,000 as a result of this transaction. not change as a result of this transaction. increase by $5,000 as a result of this transaction. b. Which option below explains why this transaction does or does not affect GDP? Selling a used car was already counted in a previous year's GDP. is counted as a final good in GDP. "added value" to the economy. is an economic transaction.
Answers
Answer:
I dont know i need help with this to
Selling a used car was already counted in a previous year's GDP.
GDP:A monetary indicator of the market worth of all the finished goods and services produced in a nation over a given time period is called the gross domestic product (GDP). To compare living standards between countries, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market. GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries. The contribution of each industry or sector to the overall GDP can also be quantified.Therefore, the correct answer is that Selling a used car was already counted in a previous year's GDP.
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Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related$1.33per guest Complexity-related$28.42per tier Order-related$74.92per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Tijerina WeddingTwersky Wedding Number of reception guests 54 129 Number of tiers on the cake 2 4 Cost of purchased decorations for cake$29.30$54.84 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Tijerina wedding cake to just break even
Answers
Answer:
$230.02
Explanation:
Calculation for what amount would the company have to charge for the Tijerina wedding cake to just break even
Size related $69.16
($1.33 per guest × 52 guests)
Complexity-related $56.84
($28.42 per tier × 2 tiers)
Order-related $74.72
($74.92 per order × 1 order)
Cost of purchased decorations for cake $29.30
Total cost $230.02
($69.16+$56.84+$74.72+$29.30)
The amount that the company would have to charge for the Tijerina wedding cake to just break even will be $230.02
A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $10,000 must be paid out to a beneficiary, and the account liquidated at the end of year four. If the liquidation value is $100,000, the account has earned an annual internal rate of return of ___________%. (percent, rounded three places after the decimal)
Answers
Answer:
14.06%
Explanation:
Assume their is a cash out flow today of $100000, and next four year annual cash inflow of 10000 and 120000 at the end of year 4.
We can use IRR formula to find the interest rate.
year cashflow
0 -100000
1 10000
2 10000
3 10000
4 130000
IRR 14.06%
The calculation has been done on excel sheet
use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
the answer is D
Answers
Answer:
B. giving loans
Explanation:
Banks use a large proposition of their deposits to create loans for other customers. The federal reserve requires commercial banks to hold a small percentage of deposits as reserves. The reserve requirement is one of the monetary policy tools of the Federal Reserve.
In most cases, the reserve requirement is around 10 percent or below of the total deposits. As a fraction, 10 Percent is a tenth (1/10), which is a small proportion of the total deposits. The bigger percentage, 90 percent, is used to create loans to other customers.
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 71,000 Delivery cost $ 3,000 Installation charge $ 2,000 Estimated life 5 years Estimated units 146,000 Salvage estimate $ 3,000 During Year 1, the machine produced 42,000 units and during Year 2, it produced 44,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods:
Answers
Answer: See Explanation
Explanation:
You didn't give the methods to use but let me use 2 main methods.
First, let's use the Straight line Depreciation. This will be:
= ($71000 + $3000 + $2000 - $3000) / 5
= $73000/5
= $14600
Year 1 Depreciation = $14600
Year 2 depreciation = $14600
Secondly, let's use the double declining method of Depreciation will be:
= 1/5 × 2
= 0.2 × 2
= 0.4
= 40%
Year 1 depreciation will be:
= 76000 × 40%
= 76000 × 0.4
= $30400
Year 2 Depreciation will be:
= ($76000 - $30400) × 40%
= $45600 × 40/100
= $45600 × 0.4
= $18240
What is currency exchange?
O A. The assessment of the value of raw materials that have been
converted into manufactured items
O B. The conversion of money from one system to another system
O C. The printing of money that is easy to carry
O D. The purchase of stock in public corporations
Answers
Answer:
O B. The conversion of money from one system to another system
Explanation:
Currency exchange is converting the currency of a country into the currency of another country. It is the conversion of the country's A currency to the country's B currency. The rate of converting the currency of one country to another is the exchange rate.
Currency exchange takes place in the foreign currency exchange market. Demand and supply factors determine the exchange rate between currencies of two countries.
An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Stock Shares Outstanding Begin Price End Price A 4,500 $ 20 $ 25 B 7,000 $ 15 $ 12 C 3,000 $ 28 $ 35
Answers
Answer:
14.29%
Explanation:
Calculation for the price-weighted index return
Price-weighted index return = [($25 + $12 + $35)/3] - [($20 + $15 + $28)/3]/[($20 + $15+ $28)/3]
Price-weighted index return =[($72/3)-($63/3)]/($63/3)
Price-weighted index return =($24-$21)/$21
Price-weighted index return =$3/$21
Price-weighted index return =0.1429*100
Price-weighted index return =14.29%
Therefore the Price-weighted index return will be 14.29%
The Sarbanes-Oxley Act of 2002 has: Group of answer choices reduced the annual compliance costs of all publicly traded firms in the U.S. decreased senior management's involvement in the corporate annual report. decreased the number of U.S. firms going public on foreign exchanges. made officers of publicly traded firms personally responsible for the firm's financial statements.
Answers
Answer:
made officers of publicly traded firms personally responsible for the firm's financial statements
Explanation:
The Sarbanes-Oxley Act, due to corporate fraud, was created to restore investor confidence in financial markets and to fill loopholes in publicly traded companies.The law created strong audit committees for companies that traded publicly and made officials (companies) personally responsible for the accuracy of financial statements.awhich sentence best completes the diagram
A. the discount rate decrease
B. the money supply increases
C. the unemployment rate increases
D. the gross domestic product decreases
Answers
Answer:
B
Explanation:
taking unit 3 test right now
The sentence best completes the diagram is the money supply increases. Thus the correct option is B.
What are Treasury securities?To five different term options, Treasury Bills are a type of short-term security that offers protection and tax advantages to investors who invest money in them. The US government's complete faith and reputation are guaranteed as security for the debt obligations.
While selling securities has the reverse impact and takes money from the system, adding securities lowers rates, makes loans simpler to get and boosts economic activity.
When the Fed purchases Treasury securities, it converts them into "reserve balances," or deposits made at the Federal Reserve by a depository institution. This creates additional wealth for the economy.
Therefore, option B is appropriate.
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During 2020, Mike's current FICA taxable is $2,700 and will not change for the remainder of the year. As of the 48th pay, he had earned $134,400 as FICA taxable income (he had a bonus earlier in the year). Determine the amount of FICA taxes to be withheld from the next three payroll periods.
Answers
Answer:
Social Security:
Week 49 = $167.4
Week 50 = $37.20
Week 51 = $0
Medicare Tax:
Week 49 = $39.15
Week 50 = $39.15
Week 51 = $39.15
Explanation:
Note: This question is not complete. But I have found similar question on the internet and in that question we are asked to assume the Tax Caps 2020. So, we will solving this question accordingly.
Solution:
According to 2020 slabs Social Security W/H, the upper limit is $137,700, after this amount employer will not withhold social security tax.
On the other hand, there is no limit for Medicare Tax.
According to the question, we know that, Mike's Pay period per amount = $2700.
And, until 48th pay, he has earned $134,400
So,
For week 49, the amount of 2700 will be added to the net amount.
$134,400 + $2700 = $ 137,100
Hence, it does not breach the upper limit so, it will be taxed to $2700 only.
%6.2 x 2700 = $167.4
For Week 50, now the net amount is $ 137,100, and further $2700 will definitely breach the upper limit by $600.
$ 137,700 - $137,100 = $600
So, the $600 will be taxed for 6.2%
6.2% x $600 = $37.20
For week 51, there is clear breach of the upper limit, so according to the 2020 slab for social security, there will be no social security tax over the limit of $137,700. Hence, it will be 0.
Now, for Medicare Tax:
There is no limit.
And 1.45% on the FICA.
FICA earned per period = $2700
Hence,
1.45% x $2700 = $39.15 for each week.
So,
Social Security:
Week 49 = $167.4
Week 50 = $37.20
Week 51 = $0
Medicare Tax:
Week 49 = $39.15
Week 50 = $39.15
Week 51 = $39.15
A point inside the production possibilities curve is: A) attainable and the economy is efficient. B) attainable, but the economy is inefficient. C) unattainable, but the economy is inefficient. D) unattainable and the economy is efficient. Group of answer choices
Answers
Answer:
B) attainable, but the economy is inefficient.
Explanation:
In the case when there is a point that inside in the production possibility curve so it is attainable but there is non-efficient economy
Therefore according to the given options, the option B is correct
And, the rest of the options are wrong
So the same would be relevant too
New Hampshire adopted a tax law that in effect taxed the income of nonresidents working in New Hampshire only. Austin, a nonresident who worked in New Hampshire, claimed that the tax law was invalid. Was he correct
Answers
Answer:
He was correct. It violates equal protection, as this only applies to non-residents.
Explanation:
From the question we are informed about New Hampshire which adopted a tax law that in effect taxed the income of nonresidents working in New Hampshire only. Austin, a nonresident who worked in New Hampshire, claimed that the tax law was invalid. In this case, He was correct since It violates equal protection, as this only applies to non-residents. Income Tax Act can be regarded as an act that governs tax charged which applies to income of individuals, body of individuals as well as famies. The Section 1 of this Act state that tax is an obligation that needed to be fulfilled to State Inland Revenue Service in as much the the individual resides there.
A company upgraded production machinery to collect data about the fit tolerance for assembled parts of each unit produced along with environmental data such as machine temperature, parts temperature, ambient air temperature, humidity, and atmospheric pressure. Before the upgrade, only fit tolerance data was collected. The upgrade represents an increase in
Answers
Answer: Data variety
Explanation:
Based on the information provided in the question, the answer is Data Variety. Data variety has to do with the diversity of data with regards to its collection.
This can be seen from the question where we are told that only the data for fit tolerance was collected before the upgrade but the upgrade led to the collection of environmental data as well.
Therefore, the upgrade represents an increase in data variety
When the company collected only the fit tolerance data for the upgrade, the upgrade represents an increase in Data variety
The Data variety refers to the diversity of available data during data collection.
The variety of data may either be structured, unstructured and semistructured that are gathered from different sources.
Here, only the fit tolerance data was collected from the production machinery and used to decide an upgrade on the machine.
Therefore, the Data Variety is correct because its best relates to the increase in machine upgrade.
The missing options Includes "data variety, data velocity, data veracity, data validity"
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Golden Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,300 hours. At the end of the year, actual direct labor-hours for the year were 21,100 hours, the actual manufacturing overhead for the year was $538,980, and manufacturing overhead for the year was underapplied by $24,140. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been
Answers
Answer:
$544,120
Explanation:
Calculation for what The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been
First step is to calculate the Applied manufacturing overhead
Applied manufacturing overhead = $538,980 - $24,140
Applied manufacturing overhead = $514,840
Second step is to calculate the Predetermined overhead rate using this formula
Predetermined overhead rate = Applied manufacturing overhead / Actual direct labor hours
Let plug in the formula
Predetermined overhead rate = $514,840 / 21,100
Predetermined overhead rate = $24.4
Now let calculate the Estimated total manufacturing overheads using this formula
Estimated total manufacturing overheads = Estimated direct labor hours * Predetermined overhead rate
Let plug in the formula
Estimated total manufacturing overheads= 22,300 *$24.4
Estimated total manufacturing overheads= $544,120
Therefore The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been $544,120
At the end of the first month of operations, the Lamar Company's accountant prepared financial statements that showed the following amounts: Assets $90,000 Liabilities 30,000 Stockholders' Equity 60,000 Net Income 11,000 In preparing the statements, the accountant overlooked the following items: a. Depreciation for the month. $4,500 b. Service revenue earned but unbilled at month-end. $1,850 c. Employee wages earned but unpaid at month-end. 450 Determine the correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month. Assets Liabilities Stockholders' Equity Net Income Answer 87,350 Answer 30,450 Answer 86,900 Answer 7,900
Answers
Answer:
Assets = $87,350
Liabilities = $30,450
Stockholders' Equity = $56,900
Net Income = $7,900
Explanation:
The correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month can be determined as follows:
Assets = Recorded asset value - Depreciation + Unbilled service revenue = $90,000 - $4,500 + $1,850 = $87,350
Liabilities = Recorded liabilities + Unpaid wages = 30,000 + 450 = $30,450
Stockholders' Equity = Recorded Stockholders' Equity - Depreciation + Unbilled service revenue - Unpaid wages = $60,000 - $4,500 + $1,850 - $450 = $56,900
Net Income = Recorded net income - Depreciation + Unbilled service revenue - Unpaid wages = 11,000 - $4,500 + $1,850 - $450 = $7,900
Note that from the above calculations, we can obtain:
Liabilities + Stockholders' Equity = $30,450 + $56,900 = $87,350
This therefore confirms the accounting equation that:
Assets = Liabilities + Stockholders' Equity = $87,350
Suppose the price elasticity of demand for cigarettes is -0.8 and that the government can essentially set the price of cigarettes by altering the tax rate. If the government wishes to reduce the quantity of cigarettes demanded by 15 percent, how much must it raise the price of cigarettes? The government, to achieve its goal, must raise the price of cigarettes by nothing percent. (Enter your response rounded to two decimal places.)
Answers
Answer: 18.75%
Explanation:
Price elasticity of demand shows the change in quantity demanded as a result of a change in price.
If the price elasticity is negative, it means that quantity demanded and price move in opposing directions. If prices increase, quantity demanded decreases and vice versa.
Price elasticity of demand = Change in quantity demanded / Change in price
-0.8 = - 15% / x
-0.8x = -15%
x = -15% / -0.8
= 18.75%
Jane's Donut Co. borrowed $200,000 on January 1, 2021, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of: Group of answer choices $50,880. $0. $24,000. $48,000.
Answers
Answer:
$24,000
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest
= $200,000 × 12%
= $24,000
We simply multiplied the borrowed amount with the rate of interest so that the interest expense could come
hence, the third option is correct
Holly files married filing jointly and reports income of $300,000 ($340,000 AGI - $40,000 itemized deductions) before the deduction for qualified business income. She has no capital gains or dividends included in taxable income. Holly's engineering consulting service generates $20,000 of qualified business income. She paid no wages during the current year. What is Holly's deduction for qualified business income
Answers
Answer:
$4,000
Explanation:
The computation of the deduction for qualified business income is shown below:
In this the lower amount should be considered
20% of net income or 20% of qualified business income
20% of $300,000 or 20% of $20,000
So the lower amount is $4,000
hence, the same would be represented as a deduction
During the current year, the Town of Salo Alto recorded the following transactions related to its property taxes: Levied property taxes of $3,300,000, of which 2 percent is estimated to be uncollectible. Collected current property taxes amounting to $2,987,500. Collected $26,500 in delinquent taxes and $2,400 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year. Imposed penalties and interest in the amount of $3,750 but only expects to collect $3,100 of that amount. None is expected to be collected this year or within 30 days of year-end. Reclassified uncollected taxes as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.
Answers
Question Completion:
Prepare the journal entries.
Answer:
Town of Salo Alto
Journal Entries:
Debit Property Taxes Receivable $3,300,000
Credit Unearned Property Taxes $3,300,000
To record the levying of property taxes.
Debit Uncollectible Expense $66,000
Credit Allowance for Uncollectible Property Taxes $66,000
To record the 2% allowance for uncollectible taxes.
Debit Cash $2,987,500
Credit Property Taxes Receivable $2,987,500
To record the collection of current property taxes.
Debit Cash $28,900
Credit Deferred Inflows of Resources $26,500
Credit Interest and Penalties $2,400
To record the collection of delinquent taxes with interest and penalties.
Debit Penalties and Interest Receivable $3,750
Credit Interest and Penalties $3,100
Credit Allowance for uncollectible $650
To record penalties and interest imposed.
Debit Deferred Inflows of Resources $312,500
Credit Property Taxes Receivable $312,500
To re-classify uncollected taxes as delinquent.
Explanation:
The ASC 606, as applicable to GASB, specifies when property tax revenues should be recognized in government-wide financial statements. Governmental revenue, e.g. property tax revenue, should be considered as revenue in the current period if it can be collected within that period or sixty days after the current period. If it cannot be so collected, it needs to be re-classified as delinquent.
Your daughter is currently 10 years old. You anticipate that she will be going to college in 8 years. You would to have $136,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you need to put into the account today to ensure that you will have $136,000 in 8 years
Answers
Answer:
$107,359.66
Explanation:
We are to calculate the present value of $136,000
The formula for calculating present value is :
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$136,000 / (1.03)^8 = $107,359.66
On January 1, 2019, the balance in Kubera Co.'s Allowance for Bad Debts account was $1,150. During the year, a total of $3,655 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $1,450. Required: a. What was the total amount of bad debts expense recognized during the year
Answers
Answer:
$3,955
Explanation:
Bad debts are debts owned to a business whose likelihood of collection is not guaranteed.
Debit
Particulars Amount
Debtors. $3,655
Balance c/f. $1,450
Total $5,105
Credit
Particulars. amounts
Balance b/f $1,150
Bad debts. $3,955
Total. $5,105
Therefore, the amount of bad debts recognized during the year is $3,955
1. On April 30, Gomez Services had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May
Answers
Answer:
the amount of credit sales is $47,000
Explanation:
The computation of the amount of credit sales is shown below;
= Ending balance of account receivable + cash receipts - opening balance of account receivable
= $13,000 + $52,000 - $18,000
= $47,000
Hence, the amount of credit sales is $47,000
An
is an additional feature on a rental car that is available at an extra cost.
Answers
Answer:
Yes because it will always coast more
Explanation:
My Dad teach me about that hope this help.
Banks use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
Answers
Answer:
the answer is D.
Maintaining reserves
