On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.Required:
1. Record the issuance of note.
2. Record the adjustment for interest.
3. Record the repayment of the note at maturity.
Answers
Answer:
1.
Aug 1st,2021; Entry to record note issuance is as followed:
Dr Note Receivable $20,600,000
Cr Cash $20,600,000
(to record the issuance of note to Trico Technologies)
2.
Dec 31st,2021; Entry to record interest income from note receivable:
Dr Interest revenue receivable $515,000
Cr Accrued Interest Income $515,000
(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)
3. January 31st, 2022; Entry to record repayment of the note at maturity:
Dr Cash $21,218,000
Cr Interest Income $103,000
Cr Note Receivable $20,600,000
Cr Interest Income receivable $515,000
( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.
Explanation:
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What is the present value of a $500 payment received at the end of each of the next five years, worth to you today at the appropriate discount rate of 6 percent? $1,105 $1,850 $2,106 $2,778
Answers
Answer:
The Skulls
The location that Skulls should select is:
Alpha Avenue.
Explanation:
a) Data and Calculations:
Estimated number of persons living in this new chapter house = 30
Fixed Variable Total Cost
Alpha Ave. $5,000 $200 per person $11,000
Beta Blvd. $8,000 $150 per person $12,500
b) The location that Skulls should select must minimize the total cost. The location which meets this criterion is Alpha Avenue, with a total cost of $11,000. This is purely because of the number of persons living in the chapter house. Assuming that this number would increase, then it may be considered economically better to choose the Beta Boulevard instead of the Alpha Avenue.
Answers
Answer:
If the tax rate is 10% the better option is transaction 1 ($11,100 to 14,220)
IF the tax rate is 30% the better option is transaction 2 ($10,885 to 11,100)
Explanation:
We will compare the after tax cost for transaction two and check if it is better than 11,100 which will be the net cost for transaciton one
We must understad that the tax income deductible transacton provides a tax shield on the tax income, therefore his net effect is lower after considering taxes.
the rate will be think it as a discount to the pruchase price
at 10% income rate:
15,800 x ( 1 - 10% ) = 14,220
at 30% income rate
15,500 x ( 1 - 30% ) = 10,885
Answers
Answer:
The correct solution is "$397000".
Explanation:
Given:
Net income,
= $377000
Depreciation,
= $59000
Accounts receivable increase,
= $27000
Accounts payable decreased,
= $12000
Now,
From operating activities, the cash flow will be:
= By putting the values, we get
=
= ($)
b. False
Answers
Answer:
a. True
Explanation:
The system of the bank contains the customers data i.e. name and the address by which they could be identified also their accounts are identified. Each and every account has the balance option also it involved two types of accounts i.e. saving that provides the rate of interest and the other one is for investment that used to purchase the stocks
Hence, the given statement is true
B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.
C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.
D) The employer must implement an early retirement incentive program for Edward.
E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.
Answers
Answer:
The corrwct option is B
Explanation:
The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service
Answers
Answer:
Credit card float is the difference in time between the date of purchase and date when the payment is due.
Credit card Float = 54 days
Explanation:
The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.
This is exactly like in depreciation 'available for use date' and 'date of use'
available for use is used to calculate depreciation, so we start on the purchase date.
on the date when payment is due
we have 25th of Feb and the 23rd of Feb the date of payment
we take 23rd the date of payment
just like in assets if an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.
Therefore the float period is between 1 jan and 23 feb = 54days
Answer:
58 days
Explanation: