Answer:
1a. Product H $16,000
Product L $3,200
1b. Product H $1,360,000
Product L $272,000
Total $1,632,000
2. Product H $20.40
Product L $102.00
Explanation:
1-a. Calculation for how much overhead cost per unit would be applied to each product
Product H Product L
Number of units produced 40,000 8,000( a)
Direct labor-hours per unit (b) 0.40 0.40 (b)
(a) × (b)=Total direct labor-hours 16,000 3,200 Total =$19,200
Therefore Amount of hoverhead cost per unit applied to each product is :
Product H $16,000
Product L $3,200
1-b. Computation for the total amount of overhead cost that would be applied to each product
Product H Product L Total
Manufacturing overhead applied per unit
0.40 DLH per unit × $85.00 per DLH= $34.00 (a)
Number of units produced 40,000 8,000 (b)
(a) × (b)=Total manufacturing overhead applied $1,360,000 $272,000
Total=Product H $1,360,000+Product L $272,000
Total= $1,632,000
Predetermined overhead rate of $ 85.00 per DLH is calculated as:
Total manufacturing overhead $ 1,632,000(a)
Total direct labor-hours 19,200 DLHs(b)
(a) ÷ (b) =Predetermined overhead rate $ 85.00 per DLH
Therefore the total amount of overhead cost that would be applied to each product is :
Product H $1,360,000
Product L $272,000
Total $1,632,000
C. Calculation for how much overhead cost per unit would be assigned to each product
Product H Product L Total
Total manufacturing overhead assigned (a)
$816,000 $816,000 =$1,632,000
Number of units produced (b) 40,000 8,000
(a) ÷ (b) =Manufacturing overhead per unit $20.40 $102.00
Therefore the amount of overhead cost per unit would be assigned to each product is :
Product H $20.40
Product L -$102.00
Mohamed income elasticity for good A is equal to -1.5. His current income is Br.40, 000 per year and he buys 200 units of good A annually. If his income falls to Br.36, 000 how many units of good A will he purchase?
your mom hahahahahahhahaahhaahahjahahahahahhahadmdkuxndzmwcd9oo
An important first step in adapting a product to a foreign market is to determine the Group of answer choices personal ethics of individuals in the target market. language problem of the intended market. product's compliancy to irrational beliefs of its potential foreign consumers. regional political parties present in the domestic market. degree of newness of the product as perceived by the intended market.
Answer:
degree of newness of the product as perceived by the intended market.
Explanation:
As the new product is in the market so the willing of the consumers are to evaluate the production that depends upon the product newness in the market
The other options are incorrect as if the evaluation of the consumers depend upon the irrational beliefs so it would not be intended to purchased
Therefore the last option is correct
hence, the same is to be considered
Suppose a Canadian firm and a Japanese firm both produce rice. Also suppose the ratio of the price of land divided by the price of labour is lower in Canada than in Japan. If they both seek to maximize economic profit, the Canadian firm will use the two inputs, land and labour, in such a way that its land/labour ratio in production:_________.
A. is equal to one.
B. is higher than that of the Japanese firm.
C. is equal to that of the Japanese firm.
D. is lower than that of the Japanese firm.
E. can't be determined without knowing the absolute prices of land and labour in each country,
Answer:
The answer is "Option E".
Explanation:
Complete values are the number of dollars that can be traded for just a specified volume.
Cash flows calculate that equity capital to a workforce. In particular, over the period, companies generally have higher equity shares rated to improve their output through investment as well as the automation of a working system. The capital adequacy ratio (K/L) was its proportion of assets to capital levels of intensity.
Labor's high wealth Whenever the labor costs are high, companies will try to replace assets with labor. For example, waitstaff in Europe is fitted with a mitral valve that directly delivers the orders to a kitchen.
It allows the use of labor less efficient and far less necessary. It may not be necessary or desirable to spend in the command post equipment to relatively low labor costs, thus providing a feeling of sadness ratio. The brief variation in labor is simpler than the stock of capital. Financial performance to work is tending may rise in downturns as companies lose their jobs. Migrants and creating a company High national salaries of areas with high working capital will usually occur.
This would allow employers to shift from a low investment wage to a high wage growth ratio. It reduces real wage inequalities and eliminates the investment difference. In western China, for example, workers have moved to SE China, of higher wages.
John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. Complete John and Cynthia's Schedule B (Form 1040), Interest and Ordinary Dividends.
Answer:
Calculation of Net taxable income
Particulars Amount Amount
Interest income from savings interest $200
Interest income from certificate deposit $350
Dividend from saving account with $100
local credit union
Interest income from us treasury note $250
Tax exempt interest from municipality bond $500
Ordinary dividend $1,700
Gross total income $3,100
Income exempt
Dividend from saving account $100
Dividend from treasury note $250
Tax exempt interest from municipality bond $500 $850
Net taxable income $2,250
Jeff sells the New York Times Sunday newspaper at a city corner near several churches. He sells each newspaper for $6.50 after purchasing them for $4.00. Any unsold newspaper can be returned to the New York Times for a $0.75 credit. Jeff expects demand on Sunday to be 75, 100, 125, or 150 newspapers and would like to order one of these four quantities from the New York Times. If the Jeff uses the minimax regret criterion, how many newspapers will he order
Answer:
0
Explanation:
A company is completing its annual impairment analysis of the goodwill included in one of its cash generating units (CGU). The recoverable amount of the CGU is $32,000. Other information related to the CGU is provided below:
Goodwill Patents Assets Total
Historical cost $15,000 $10,000 $35,000 $60,000
Depreciation and 0 3,333 11,667 15,000
amortization
Carrying amount $15,000 $6,667 $23,333 $45,000
12/31
Under IFRS, which of the following adjustments should be recognized in the company's consolidated financial statements?
a) Decrease goodwill by $13,000
b) Decrease goodwill by $15,000
c) Decrease goodwill by $3,250; patents by $2,167; and other assets by $7,583
d) Decrease goodwill by $4,333; patents by $1,926; and other assets by $6,741
Answer:
a) Decrease goodwill by $13,000
Explanation:
In IFRS, whenever recoverable amount of a cash generating unit is less than the carrying amount, an impairment loss is recognized. After calculating an impairment loss, it is then allocated to the carrying amount of Cash generating unit's goodwill.
Impairment loss in this case is = Total carrying amount - Recoverable amount of CGU = $45,000 - $32,000 = $13,000. Hence, the impairment loss will be allocated to the carrying value of the goodwill, leading to decrease in goodwill by $13,000.
Kingbird Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $249,600 and a remaining useful life of 8 years. During 2020, Kingbird incurred research and development costs of $90,000 and brought a patent infringement suit against a competitor. On December 1, 2020, Kingbird received the good news that its patent was valid and that its competitor could not use the process Kingbird had patented. The company incurred $93,500 to defend this patent.
Required: At what amount should patent(s) be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents?
Answer:
The amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.
Explanation:
This can be calculated as follows:
Patent book value = $249,600
Remaining useful years January 1, 2020 = 8
Remaining useful months of the patents from January 1, 2020 = Remaining useful years January 1, 2020 * 12 8 * 12 = 96
Monthly Patent book value = Patent book value / Remaining useful months = $249,600 = $2,600
Patent book value amortized from January 1, 2020 to December 1, 2020 = Monthly Patent book value * 12 = $2,600 * 12 = $31,200
Legal fee incurred = $93,500
Number of months from January 1, 2020 to December 1, 2020 = 11
Relevant months of legal fee incurred starting from December 1, 2020 = Remaining useful months of the patents from January 1, 2020 - Number of months from January 1, 2020 to December 1, 2020 = 96 - 11 = 85
Monthly legal fee = Legal fee incurred / Relevant months of legal fee incurred starting from December 1, 2020 = $93,500 / 85 = $1,100
Amount to report = Patent book value amortized from January 1, 2020 to December 1, 2020 + Monthly legal fee for December 1, 2020 only = $31,200 + $1,100 = $32,300
Therefore, the amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.
Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines:
Category Guidelines
Purchases Pay half in current and half in following month.
Payroll Pay 90% in current month and 10 percent in following
month.
Loan Payments Pay total amount due each month.
Predicted activity for selected months follow:
Category May June July August
Purchases $30,000 $46,000 $48,000 $50,000
Payroll 100,000 130,000 120,000 100,000
Loan Payments10,000 10,000 12,000 12,000
Prepare a schedule showing cash disbursements by account for July and August.
Answer:
Waycross Manufacturing
A Schedule, showing cash disbursements by account for July and August:
Category July August
Purchases $ 47,000 $ 49,000
Payroll 121,000 102,000
Loan Payments 12,000 12,000
Total cash disbursements $180,000 $163,000
Explanation:
a) Data:
Predicted activity for selected months follow:
Category May June July August
Purchases $30,000 $46,000 $48,000 $50,000
Payroll 100,000 130,000 120,000 100,000
Loan Payments 10,000 10,000 12,000 12,000
b) Calculations:
Category May June July August
Purchases (50/50) $15,000 $15,000
23,000 $23,000
24,000 $24,000
25,000
Purchases $47,000 $49,000
Payroll (90/10) $90,000 $10,000
117,000 $13,000
108,000 $12,000
90,000
Payroll $121,000 $102,000
Loan Payments (100%) 10,000 10,000 12,000 12,000
Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. Under the indirect method, the cash flow from operations is $32,000.
a. True
b. False
Answer:
a.
Explanation:
True
hope it helps!
....
Which psychographic or lifestyle trend does this study support
Answer:
where is the study at?
Explanation:
Why are visually interesting effects, such as WordArt, to be used sparingly? How does understanding your intended audience’s expectations inform how and when you use a visual effect, such as WordArt? Would you approach using WordArt in the same way in a presentation directed to young adults and a presentation directed to business professionals?
Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wanted to.
Reposition how the consumers perceived chocolate milk.
What's the most common reason why the government would stop a
proposed merger?*
to limit consumer choices
O to increase social justice
O to maintain inflation in the economy
to maintain competition in a market
Answer:
I think its to maintain inflations in the economy (sorry if im wrong)
Explanation:
Answer:
to increase social justice
The last five annual dividends for MysteryCorp have been: $1.25, $1.38, $1.49, $1.60, and $1.69. Next year's dividend is expected to be $2. The current stock price is $199 per share. First, calculate the geometric average annual rate of growth based on the historical dividends (taking into account the previous five -- do *not* include next year's expected dividend in this calculation). Your estimate of RE, the cost of equity, is ________%.
Answer:
Re = 8.79%
Explanation:
annual growth rates:
($1.38 - $1.25) / $1.25 = 0.104
($1.49 - $1.38) / $1.38 = 0.078
($1.60 - $1.49) / $1.49 = 0.074
($1.69 - $1.60) / $1.60 = 0.056
geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%
P₀ = Div₁ / (Re - g)
$199 = $2 / (Re - 0.0779)
Re - 0.0779 = $2 / $199 = 0.01
Re = 0.01 + 0.0779 = 0.0879 = 8.79%
a weak home currency may not be the perfect solution to correct a balance of trade deficit because
Answer:
foreign companies may reduce the prices of their products to stay competitive.
Item9 Time Remaining 57 minutes 4 seconds00:57:04 Item 9Item 9 Time Remaining 57 minutes 4 seconds00:57:04 In a statement of cash flows: Multiple Choice Operating activities are the same activities as reported in the income statement. The two primary reporting classifications of cash flows are inflows and outflows. No noncash transactions are reported in the statement itself or the related footnote. Inflows and outflows for cash equivalents are reported as operating activities.
Answer:
Operating activities are the same activities as reported in the income statement
Explanation:
As we know that in the cash flow statement there are three types of sections i.e. operating, investing and financing. ALso it deals with the inflow and the outflow of cash
here we adjusted the non-cash and non-operating activities to the operating profit
Plus we add the non-cash expense
and deduct the gain and add the losses
Therefore the first option is correct
what are two suggestions for finding a job?
1. plan ahead and organize for both the application and if you actually get the job.
2. do something you love that fits your personality!
Answer:
Look online since it's a pandemic going on right now, try to find a good paying job that you can do without breaking your back and also has good pay like 15$ or 20$ a hour is good for starters, in certain schools, you can get paid for doing certain things but if really needed to, you can go into a store that you would want to work at to see if they have any openings. Hope this helps! Have a nice day!
Explanation:
The Aros smart window air conditioner has gone through all of the first five stages of the product development process, and the marketing team has its marketing mix figured out for the product. They launch the product through the Quirky website to a broader market than the test group, in order to see if the positioning and messaging for the product hits the right mix for the market. What is the marketing team doing in this stage
Answer:
They are testing the product's marketing mix with a wider market and validating its effectiveness
Explanation:
Marketing mix is a combination of factors that a company considers when they are marketing a product to the consumer.
They are price, product, place, and promotion.
For sales of a product to be successful the marketing mix must be effective in the target consumers.
Tests are carried out on a test sample of buyers and then to a larger population to test efficacy of the marketing mix before launching the product.
In the given scenario Aros Smart window launched the product through the Quirky website to a broader market than the test group, in order to see if the positioning and messaging for the product hits the right mix for the market.
They are testing the product's marketing mix to determine its effectiveness
Cabell Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. The company's minimum required rate of return is 15%. The division's margin is closest to: Dacker Products is a division of a major corporation. The following data are for the most recent year of operations:
Sales $38,380,000
Net operating income $ 3,758,960
Average operating assets $ 9,900,000
The company's minimum required rate of return 15%
The division's residual income is closest to:
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales
Net operating income
Average operating assets $17,540,000 $ 648,980 $ 4,560,000
The division's return on investment (ROI) is closest to:
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales $ 17,810,000
Net operating income $ 783,640
Average operating assets $ 4,640,000
The division's turnover is closest to:__________.
Answer:
1. Cabell Product Margin = Net operating income / Sales
Cabell Product Margin = 1346640 / 21720000
Cabell Product Margin = 0.062
Cabell Product Margin = 6.20%
2. Dacker Products Residual income = Net operating income - ( Average operating assets * Minimum required rate of return)
Dacker Products Residual income = 3758960 - (9900000*15%)
Dacker Products Residual income = 3,758,960 - 1,485,000
Dacker Products Residual income = 2,273,960
3. Agustin Return on investment = Net operating income / Average operating assets
Agustin Return on investment = 648980 / 4560000
Agustin Return on investment = 0.142320175
Agustin Return on investment = 14.23%
Agustin Turnover = Sales / Average operating assets
Agustin Turnover = 17810000 / 4640000
Agustin Turnover = 3.838362068965517
Agustin Turnover = 3.84
Hart corporation owns machinery with a book value of 285,000. It is estimated that the machinery will generate future cash flows of 300,000. The machinery has a fair value of 210,000. Hart should recognize a loss on impairment of:___________
a) 0
b) 15,000
c) 75,000
d) 90,000
Cabal Products is a division of a major corporation. Last year the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. The company's minimum required rate of return is 16%.
The division's residual income is closest to:_________.
a) $1,290,576
b) $383,824
c) $837,200
d) $906,752
The sensitivity of a system for disciplining and possibly terminating employees is important, and it is critical that the system be seen as fair. Employees form conclusions about the system's fairness based on the system's outcomes and procedures and the way managers treat employees when carrying out those procedures. Three principles of justice are outcome fairness, procedural justice, and interactional justice. Outcome fairness involves the ends of a discipline process or action, while procedural and interactional justice focus on the means to those ends. Not only is behavior ethical that is in accord with these principles, but research has also linked the last two categories of justice with employee satisfaction and productivity. This activity is important because it will give you practice with the three basic principles of justice. The goal of this activity is to discuss how employees determine whether the organization treats them fairly. Read each scenario, then select the appropriate principle of justice to which it pertains. 1. You and a friend apply for a job at a hardware store and you believe that you are more qualified, but your friend is offered the job and you are not. Outcome Fairness 4 2. You find out that your friend's uncle is the hiring manager for the company you both work for. Procedural Justice 4 3. Although you did not receive a job offer, the human resources representative called to explain why he thought your friend was more qualified than you. Outcome Fairness A 4. Your manager approaches you about a promotion you did not receive and respectfully explains that although you did not get the promotion, your superb characteristics make you a strong candidate next time. ((Click to select) 5. Your co-worker who received a promotion when you did not was a college buddy of your manager who lunches with him weekly. Procedural Justice 6. You approach your HR manager about what you see as unequal distribution of family benefits. She empathizes and asks how to assist with your family needs. ((Click to select) 7. Your co-worker receives a promotion that you applied for and did not receive. Outcome Fairness 4 8. You realize that female employees seem to be receiving more perks and family-related benefits than male employees in the organization. Procedural Justice A 9. You did not receive a raise because your manager did not think you finished your major project for the year even though it was completed last week. ((Click to select) 10. You notice that some individuals in the organization are receiving more family-related benefits than others. ((Click to select) 11. You talk to your manager about not receiving a raise and think it is because your project was not finished. He listens and discusses how to resolve the issue. Interactional Justice 12. Your manager gives pay raises to half of your team, but you do not receive one. Outcome Fairness A
Answer:
1. You and a friend apply for a job at a hardware store and you believe that you are more qualified, but your friend is offered the job and you are not.
Outcome Fairness
2. You find out that your friend's uncle is the hiring manager for the company you both work for.
Procedural Justice
3. Although you did not receive a job offer, the human resources representative called to explain why he thought your friend was more qualified than you.
Interactional Justice
4. Your manager approaches you about a promotion you did not receive and respectfully explains that although you did not get the promotion, your superb characteristics make you a strong candidate next time. ((Click to select)
Interactional Justice
5. Your co-worker who received a promotion when you did not was a college buddy of your manager who lunches with him weekly.
Procedural Justice
6. You approach your HR manager about what you see as unequal distribution of family benefits. She empathizes and asks how to assist with your family needs. ((Click to select)
Interactional Justice
7. Your co-worker receives a promotion that you applied for and did not receive.
Outcome Fairness
8. You realize that female employees seem to be receiving more perks and family-related benefits than male employees in the organization.
Procedural Justice
9. You did not receive a raise because your manager did not think you finished your major project for the year even though it was completed last week. ((Click to select)
Procedural Justice
10. You notice that some individuals in the organization are receiving more family-related benefits than others. ((Click to select)
Outcome fairness
11. You talk to your manager about not receiving a raise and think it is because your project was not finished. He listens and discusses how to resolve the issue.
Interactional Justice
12. Your manager gives pay raises to half of your team, but you do not receive one.
Outcome Fairness
Explanation:
The three identified principles of justice are outcome fairness, procedural justice, and interactional justice. Outcome fairness refers to the perception of the fairness of the distribution of outcomes. Procedural fairness refers to the fairness in the procedures followed when arriving at a decision or judgement. Interactional fairness refers to the interpersonal and information fairness that is shown in implementing procedures. Outcome fairness concentrates on the ends, while procedural and interactional justices focus on the means to the ends.
if you cause damage to your apartment, your landlord can
Answer:
...send you out for vandalizing the property?? i dunno lol
Explanation:
Answer:
you could get evicted
Explanation:
On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows: Indian River Groves borrowed $2,200,000 on a construction loan at 12% interest on January 2, 2014. This loan was outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2014 and 2015. The interest capitalized for 2014 was:
Answer:
the expenditures are missing, so I looked for a similar question:
1/2/2014 $400,000 7/1/2014 $1,200,000 12/31/2014 $1,200,000 3/31/2015 $1,200,000 9/30/2015 $800,000Weighted average expenditures for 2014:
January 1 = $400,000 x 1 = $400,000
July 1 = $1,200,000 x 1/6 = $600,000
December 31 = $1,200,000 x 0 = $0
total = $1,000,000
Since the company borrowed $2,200,000 specifically for this construction project, then capitalized interests = $1,000,000 x 12% = $120,000
Agriculture allows for a higher carrying capacity (it can produce more and support more people) than other adaptive strategies. This gives rise to higher population density and can allow more easily for an elite supported by the labor of others.
A. True
B. False
Answer:
A. True
Explanation:
As we know that the agriculture is the main source i.e. important for generating or producing any type or any kind of the processed food also at the same time it became helpful for producing various employment opportunities
So as per the given statement, the statement is true
hence, the same is to be considered
If a firm is deciding upon the acceptance of a project with a value of $10,000, and if the client has a good credit history, the firm will most likely use the grid chart in the decision-making process.
a) true
b) false
Answer:
FALSE
Explanation:
The Decision-Making Process includes Identifying the need for a decision, Determining the outcome of the decision, Identifying all alternative actions, the benefits and consequences of each and Making and Evaluating the decision.
Decision-Making Tools includes the use of decision-making grid to differenciate or separates factors of decision to be made, the use of Gantt chart to shows phases of project to completion and Information technology and others.
The grid chart shows the relationship between input and output documents.
HELP PLEASE 30 points !
Mary is an agent who works with a direct marketing insurance company. She is more specially known as a(n) ..
A - Broker agent
B- Independent agent
C- Certified agent
D- Captive agent
Answer:
i say broker agent.......
Answer:
It's D! Captive Agent is the correct answer.
Question 2. Suppose the mean age of video game players is 28, the standard deviation is 9 years, and the distribution is bell shaped. To assist a video game company’s marketing department in obtaining demographics to increase sales, determine the proportion of players who are
a. between 19 and 28
b. between 28 and 37
c. older than 37
Answer:
0.34134 ; 0.84134; 0.15866
Explanation:
Given that:
Mean (m) = 28
Standard deviation (s) = 9
Proportion of players;
a. between 19 and 28
P(x < 28) - P(x < 19)
Z = (x - mean) / standard deviation
[Z = (28 - 28) / 9] - [Z = (19 - 28) /9]
P(Z < 0) - P(Z < - 1)
0.5 - 0.15866 [Z probability calculator]
= 0.34134
b. between 28 and 37
P(x < 37) - P(x < 28)
Z = (x - mean) / standard deviation
[Z = (37 - 28) / 9] - [Z = (28 - 28) /9]
P(Z < 1) - P(Z < 0)
0.84134 - 0 [Z probability calculator]
= 0.84134
c. older than 37
P(x > 37)
Z = (x - m) / s
Z = (37 - 28) / 9
Z = 9/9 = 1
P(Z > 1) = 1 - P(Z < 1)
P(Z > 1) = 1 - 0.84134
P(Z > 1) = 1 - 0.84134
P(Z > 1) = 0.15866
Kieso Company borrowed $630,000 for five months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $630,000 one month prior to the end of its last fiscal year and paid the $630,000 plus interest back four months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year
Answer and Explanation:
The computation of the interest expense is shown below'
The following formula should be used:
= borrowed amount × rate of months × number of months ÷ total number of months
End of last year is
= $630,000 × 9% × 1 ÷ 12
= $4,725
And,
Current fiscal year is
= $630,000 × 9% × 4 ÷ 12
= $18,900
We simply applied the above formula so that the correct value could come
And, the same is to be considered
On August 1, 2020, Ascent Corp. borrowed $80,000 cash on an 8-month note payable with a 7% annual rate that requires Ascent to pay all the interest and principal on April 1, 2021. Assuming the necessary adjusting entry to accrue interest expense was properly recorded on December 31, 2020, the journal entries to record the payment of interest on April 1, 2021 will include a (Round to the nearest whole dollar, if necessary):
Answer and Explanation:
The computation is shown below:
Interest payable:
= Borrowed amount × rate of interest × given months ÷ total months
= $80,000 × 7% × 5 ÷ 12
= $2,333.33
And,
Interest expense:
= Borrowed amount × rate of interest × given months ÷ total months
= $80,000 × 7% × 3 ÷ 12
= $1,400
So here for recording the payment of interest the interest payable is debited for $2,333.33
The same is to be considered