Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 9 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Accounts Receivable-Valley Designs Allowance for Doubtful Accounts Feedback The account receivable must be removed from the books and the newly issued note receivable recorded. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

Answers

Answer 1
Answer:

Answer: Please see answer in explanation column

Explanation:

a) Due date = April 22+90 days =  July  21

b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440

c1) Journal entry  for receipt of note by Bork Furniture

           journal       Debit                          Credit

Notes receivable       $96,000  

Account receivable                                        $96,000

C2) Journal entry  to record receipt of payment at maturity

 journal                     Debit                             Credit

Cash                        $97,440  

Notes receivable                                            $96,000

Interest revenue                                       $1,440 (97,440-96,000)


Related Questions

You consider buying a share of stock. The stock is expected to pay a dividend of $1.50 next year, and dividends are expected to grow by 5% per year forever. What is the stock price now if the stock's beta is 1.1, rf is 6%, and E[rm]
Morrish Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 6,100 direct labor-hours will be required in January. The variable overhead rate is $3.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $103,090 per month, which includes depreciation of $18,910. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Markson Company had the following results of operations for the past year: Sales (8,000 units at $20) $ 160,000 Variable manufacturing costs $ 86,000 Fixed manufacturing costs 15,000 Variable administrative expenses 12,000 Fixed selling and administrative expenses 20,000 (133,000 ) Operating income $ 27,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson’s annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:
1. Early in 2020, Cullumber Equipment Company sold 500 Rollomatics at $6,300 each. During 2020, Cullumber spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Prepare 2020 entries for Cullumber. Assume that Cullumber estimates the total cost of servicing the warranties in the second year will be $34,000.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017 2. Prepare 2017 entries for Coronado assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Coronado estimates the total cost of servicing the warranties will be $50,000 for 2 years. Estimate revenues to be recognized on a straight-line basis.Date Account Titles and Explanation Debit CreditAt Sale During 2017 Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017At SaleDuring 2017Dec. 31, 2017
write a response that describes how knowledge of the accounting equation and financial statements discussed in week 1 might be used by the Medical office Manager during normal business activities. Indicate in your answer why you believe this to be so.

In 2007, the Office of Management and Budget (OMB) defined personally identifiable information (PII) as: "Information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, biometric records, etc. alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc."True or false?

Answers

Answer:

True

Explanation:

Personally identifiable information (PII) is generally considered sensitive information, but not always. It depends on the context and how the information is used. PII is considered sensitive if i can be used to identify, locate or contact and individual and put him/her in danger.

E.g. Social security number  , contact information, bank account information, medical information, employment information, student ID, date of birth, parent names, etc.

Your parents are giving you $190 a month for 4 years while you are in college. At an interest rate of .45 percent per month, what are these payments worth to you when you first start college?

Answers

Answer:

Amount = 2827.2 dollars

Explanation:

Given

principal amount per month = 190

Total time period = 4 years = 48 months

Monthly rate of interest = 0.45

As we know that

A = P * (1+ (r)/(n)) ^(nt)

Where A is the amount

P is the principal amount

r is the rate of interest

n is the number of times interest applied over the total time period

t is the total time period

Substituting the given values in above equation, we get -

A = (190 * 12) * ( 1 + 0 .0045)^(48)\nA = 2280 * 1.24\nA = 2827.2

Final answer:

The payments of $190 per month for 4 years that your parents are giving you at the start of college, assuming an interest rate of .45 percent per month, are worth $7484.86.

Explanation:

The subject of this question is about calculating the present value of an annuity. The formula to calculate the present value of an annuity is PV = PMT * [(1 - (1 + r)^-n) / r], where PV is the present value, PMT is the monthly payment, r is the monthly interest rate, and n is the number of periods. Here PMT = $190, r = .45/100 = .0045, and n = 4 * 12 = 48 months.

Substituting the values into the formula, we get PV = 190 * [(1 - (1 + .0045)^-48)/.0045]. Then, performing the calculations, we get the present value PV = $7,484.86. Therefore, the payments your parents are providing for the 4 years of college are worth $7484.86 when you first start college assuming an interest rate of .45 percent per month.

Learn more about Present Value here:

brainly.com/question/34554678

#SPJ3

The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.

Answers

Answer:

Tarrow Corporation

a) Amount of change in millions and the percent of change:

                                   Amount      Percentage   Direction

                                of Change     of Change   of Change

Revenue                    $30,972           8.7%          Increase

Operating expenses   23,634           7.8%          Increase

Operating income       $7,338          13.8%          Increase

b) During the recent year, revenue and operating expenses increased by 8.7% and 7.8% respectively.  As a result, the operating income increased by 13.8%, from the prior year.

Explanation:

a) Data and Calculations:

Tarrow Corporation:

                                Recent Year    Prior Year    Change  Percentage

Revenue                   $386,972      $356,000    $30,972   8.7% Increase

Operating expenses 326,634         303,000      23,634    7.8% Increase

Operating income     $60,338        $53,000       $7,338  13.8% Increase

This​ year, Druehl,​ Inc., will produce 60 comma 000 hot water heaters at its plant in​ Delaware, in order to meet expected global demand. To accomplish​ this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor​ hour, how many laborers are employed at the​ plant?

Answers

Answer:

The answer is: 2500 employees

Explanation:

Giving the following information we need to calculate the number of employees:

Total production= 60000

Hours per worker= 160 hours

labor productivity= 0,15

It takes to a single employee= 1/0,15= 6,67 hours to make a heater.

Each worker produces=160/6,67=24 heaters a year.

Now we can calculate the number of workers:

60000/24= 2500 employees

Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $80,000. The all-equity plan would result in 18,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)

Answers

Answer:

Please find attached detailed solution to the above question.

Explanation:

Please as attached detailed solution.

ecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $30,000; 20Y2, $60,000; 20Y3, $143,000; 20Y4, $173,000; 20Y5, $218,000; and 20Y6, $270,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 3% stock, $100 par, and 100,000 shares of common stock, $25 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

Answers

Answer:

Find the attached dividend analysis spreadsheet for Theater Inc.

Explanation:

In analyzing the dividends in the respective years, I first calculated yearly preferred dividends which is $75,000 i.e 25,000*$100*3%

In any year where total dividends declared and paid fell short of $75,000,the entire amount is given as preferred dividends with balance carried over to future years.