Assume a bank has the following balance sheet. Determine the 2-year GAP. Asset Amount Liability Amount Cash $100 90-day CDs $100 6-month $400 360-day CDs $200 Gbonds Time Deposits 2- year 2-year $400 $900 commercial loans
Q: Sylvestor Systems borrows $50,000 cash on May 15 by signing a 60-day, 5%, $50,000 note. 1. On what…
A: The note payable is the liability for the business which is to be paid on due date with interest.
Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…
A: A credit card is a card that is issued by the bank to the users to enable that holder to pay a…
Q: business issued a 60-day note for $99,000 to a creditor on account. The note was discounted at 7%.…
A: Solution: Issuance of note to a creditor on accounts means a note payable issued to the creditor for…
Q: A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the…
A: Introduction: Non current liabilities: Non current liabilities ae to be shown in Balance sheet.…
Q: The business borrowed a 3-year 10% long term loan for TL 15.000 on October 1, 2014. The business…
A: From the given info it seemse that TL 15000 will be repaid into…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent…
A: Workings. a) Given, Loan Amount=$10000,Interest Rate=6%,Time=8 months(i.e. from May to December)…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…
A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…
Q: Bank A offers accounts that pay 5% compounded daily and Bank B offers accounts that pay 12%…
A: Particulars Bank A Bank B Deposit Amount 12000 12000 Rate of Interest 5% 12% Compounding…
Q: A business issued a 60-day note for $99,000 to a bank. The note was discounted at 7%. Journalize the…
A: Businesses may issue short-term discount notes in consideration for goods, services, or cash.…
Q: A company has the following account balances at the end of the year:• Credit Sales = $400,000•…
A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…
Q: You have Php. 100,000 to be deposited in a bank that offers compounding interest of 3%. What is the…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: 6. Prosperous Bank has the following data for the first half of 2018: 1" Qtr. P 4,000,000 2nd Qtr. P…
A: Gross receipts tax refers to the tax imposed on the compiled gross sales of a company without…
Q: On October 1, 2010, the company deposits 36.000 TL in a bank account for 1 year at 5%. Which entry…
A: Step 1 Calculation of Accrued Interest revenue for 3 months Accrued Interest for…
Q: Earth Company assigned P3,000,000 of accounts receivable as collateral for a P2,000,000 loan with a…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000,…
A: Accrued Interest means the Interest which is already due but not paid with in the specific due…
Q: You are given this account for a bank: Assets Liabilities $5,000 Deposits Reserves $ 750 $4,250…
A: The percentage of total reservable liabilities that the bank is required to hold instead of lending…
Q: A man deposited ₱5,000 in a bank at a rate of 10% per annum for 6months and 25days. Find the…
A: Simple interest is the type of interests that is calculated on the original amount invested, it will…
Q: 1)What are the proceeds of $1,000,000 deposited in a bank on July 10 for 1 month at 1.5%? Take care…
A: Since you have posted multiple questions, we will solve the first question for you. If you want any…
Q: Complete the following take table. Round your answer to the nearest cent. Table 1 month- Previous…
A: Month 1: Outstanding balance in beginning = 610$ APR = 24% Finance charge = 610$ * 24% * 1/12 =…
Q: On 7/1, the Knight's Stop took out a loan in the amount of $35,000 from Fairwinds Credit Union and…
A: Concept : Journal Entry records a business transaction following double entry accounting system.In…
Q: The following information relates to Jack Company's accounts receivable for year 2: Accounts…
A: Accounts receivable is an asset for a company which can be to pay off the current liabilities or…
Q: Bank 1 is offering interest rate of 8.4% (compounds semiannually) on fixed deposits. Bank 2 is…
A: Given information: Bank 1 offers interest rate of 8.40% (semi-annual) Bank 2 offers interest rate if…
Q: Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three…
A: Formula: Interest amount = Principal amount x Interest rate x Time period
Q: The bank statement opposite shows transactions over a one-month period for a savings account that…
A: Interest on savings account is calculated on daily balance in the account.
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Solution.... (a).After issuing of notes Current assets = $900,000 Current liabilities =…
Q: $1200 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end…
A: Compound interest is the method of increasing interest by reinvesting it so that the total principal…
Q: The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue…
A: Net Interest Margin is Difference between Interest Income earned by Bank and Interest it pays to its…
Q: On October 1, Eli's Carpet Service borrows $125,000 from First District Bank on a 3-month, $125,000,…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest…
A: There are 3 golden rules for recording journal entry : 1. Debit what comes in , Credit what goes out…
Q: Creative Advertising obtained 12% 5-year loan of $20,000 from the bank. Which ?account is credited…
A: Bank loan is an obligation which is to be paid off by an entity. It is reported under the liability…
Q: Calculate the balance at the end of seven years of a bank account paying compound interest of 2.7%…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…
A: A drawer is a person who borrows money on credit and author of the check. A payee is a person on…
Q: cash for P 150,000 and a note for the balance payable in 24 monthly installments starting April 20…
A: a. Ledger accounts in the books of Playnet.com Cash account Date Particulars Amount Date…
Q: 9. Received P10,000 cash from loan with BPI The loan have a simple interest of 10% in 1 year and to…
A: Under balance sheet approach, the payment/ receipt is debited/credit to balance sheet account and…
Q: note for $96,000 to a creditor on account. The note was discounted at 7%. Journalize the entries to…
A: Nos. Date Account and Explanation Debit Credit a March 1 Account Payable ($96,000-$1,120 ) $94,880…
Q: what is the effective interest rate on the loan?
A: Information provided: Line o credit = 500,000 Stated interest rate = 10% Compensation balance…
Q: Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent…
A: A. AMOUNT OF CASH PAID : = $0 B. INTEREST EXPENSE : = $90,000 X 8% X 3MONTHS / 12 MONTHS =…
Q: The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue…
A: ROE shows net income of the firm in terms of equity. It express how the firm used equity funds…
Q: The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue…
A: ROA is the ratio which shows income generates by using total assets of the firm. It express how…
Q: Creative Advertising obtained 12% 5-year loan of $20,000 from the bank. Which ?account is debited…
A: "Debit what comes in, Credit what goes out" is the second golden rule of accounting which will be…
Q: On October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ 125.000, 8%…
A: Given: Amount borrowed = $125,000 Period = 3 months Rate = 8%
Q: With the following information, fill in the bank given using the specified format. (For example: 40…
A: Working capital ratio: The measure which evaluates the ability of a company to pay off the…
Q: Global Inc. assigns $3,000,000 of its accounts receivables as collateral for a $2,000,000, 8%, loan…
A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…
Q: 1. A bank charges 1.5% per month on a loan. Find the equivalent nominal rate of interest. 2. A…
A: As you have asked multiple questions, we will solve the first question as per Bartleby policy.…
Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…
A: Defination: A Drawer is a person who borrows money on credit and author of the check.A Payee is a…
Q: 3 The bank statement opposite shows transactions over a one-month period for a savings account that…
A: Interest income: It implies to the revenue that is earned by the lender from lending funds to the…
Q: an amount of Php 5000 is deposited in a bank at 5% compounded quarterly for 3 years. After 3 years…
A: We need to use compounding interest formula first to calculated amount after 3 years A=P(1+i)n Where…
Q: From page 8-2 of the VLN, from the practice problem, on May 31 when the company pays the bank back,…
A: In the context of the given question, we will emphasize the conservatism principles: The…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
- The followimg assets were among those that appeared on Baird’s Co.’s books at the end of the year:Demand bank deposits P650,000Net Long-Term Receivables 400,000Patents and Trademarks 150,000 In preparing constant peso financial statements, how much should Baird classify as monetary assets?a.1,200,000b.1,050,000c.800,000d.650,000H6. On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the loan are, principal plus interest is due in 3 months. The interest rate is 6% annually. The journal entry to record the loan would include: A.) A credit of $100,000 to Note Payable B.) A credit of $106,000 to Notes Payable C.) A debit to Notes payable of $100,000 D.) A credit to cash of $100,000The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 $ $ Cash at bank 17,050 20,150 Inventories 1,013,700 1,171,800 Accounts receivable 740,000 755,000 Bills receivable 13,175 15,190 Bad debts written off during the year 9,610 - Sales revenue for the year 2,821,000 4,030,000 Discount allowed 4,960 4,340 The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000. Required: Determine the amounts of the following accounts. Show your workings for each item.…
- The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 $ $ Cash at bank 17,050 20,150 Inventories 1,013,700 1,171,800 Accounts receivable 740,000 755,000 Bills receivable 13,175 15,190 Bad debts written off during the year 9,610 - Sales revenue for the year 2,821,000 4,030,000 Discount allowed 4,960 4,340 The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000. Calculate the receivable turnover ratio for year 2021 and comment on the ratioOn June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current liabilities were $360,000. On July 1, Year 3, Franza issued a long-term note to a bank for $72,000 cash. Requireda. Compute Franza’s working capital before and after issuing the note.b. Compute Franza’s current ratio before and after issuing the note. (Round your answers to 1 decimal place.)Mixon Company’s year-end balance sheets show the following: EXERCISE 1–3 Evaluating Short-Term Liquidity 2006 Cash ............................ $ 30,800 Accountsreceivable,net ............. 88,500 Merchandiseinventory ............... 111,500 Prepaidexpenses ................... 9,700 Plantassets,net ................... 277,500 Totalassets ....................... $518,000 Accountspayable ................... $128,900 Long-term notes payable secured by mortgages on plant assets . . . . . . . 97,500 Commonstock,$10parvalue ......... 162,500 Retainedearnings .................. 129,100 Totalliabilitiesandequity ............ $518,000 2005 $ 35,625 62,500 82,500 9,375 255,000 $445,000 2004 $ 36,800 49,200 53,000 4,000 229,500 $372,500 $ 49,250 82,500 162,500 78,250 $372,500 $445,000 $ 75,250 102,500 162,500 104,750 49 Required: Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio…
- You are an investor looking to contribute financially to either company A or Company B. The following, select financial information as follows. Company A and company B, respectively: Beginning Account Receivable $ 50,000, 60,000; Ending Account Receivable $ 80,000, 90,000; Net credit sales $ 550,000, $460,000. Based on the information provided: compute the account receivable turnover ratio. Compute the number of days sales in receivables ratio for both companies A and company B ( round all answers to two decimals places) Interpret the outcomes stating which company you would invest in and why.Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account 4,500 Interest on Cash Credits 16,800 Discounts received 21,000 Commission Expenses 600 Commission Received 2,400 Director’s Fees 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 Other office expenses 120 Depreciation on Fixed Assets 6,000 Miscellaneous Expenses 1,200 Other Adjustments: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills…Following are the balances of Bank Muscat for the year ended as on 31st December 2020 (Amounts are in 000’ OMR) PARTICULARS OMR Interest on Savings Account 6,000 Interest on Fixed Deposits 33,000 Interest on Loans 19,200 Rent and Rates 1,500 Interest on Current Account 4,500 Interest on Cash Credits 16,800 Discounts received 21,000 Commission Expenses 600 Commission Received 2,400 Director’s Fees 150 Salaries and Allowances 6,000 Interest on Overdrafts 18,000 Interest on borrowings from other banks 1,500 Legal Charges 90 Transfer Fees paid 1,200 Locker Rent 1,800 Other office expenses 120 Depreciation on Fixed Assets 6,000 Miscellaneous Expenses 1,200 Other Adjustments: Fair value of sale of investments were increased by: OMR 3,600 Loss on exchange difference arising on transactions of foreign operations was: OMR 600 Income tax expenses: OMR 9,000 Impairment for loans: OMR 300 Impairment for investments: OMR 2,700 Rebate on bills…
