Answered: Assuming a 360-day year, when a…

Assuming a 360-day year, when a $11,918, 90-day, 10% interest-bearing note payable matures, total payment will be a.$13,110 b.$1,192 c.$298 d.$12,216

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

See similar textbooks

Related questions

Q: Given the following, calculatge the state (assume 5.3%) and federal unemployment taxes that the…

A: Payroll accounting is the calculation of employee's compensation. It includes recording and…

Q: 30. Julian Tan owns a store specializing in rare trinkets which is her only source of income. She…

A: When the gross sales exceed P3000000 then the tax is payable at the regular rate. The regular rate…

Q: On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries.…

A: maturity value of the note = issue price + Interest accrued

Q: CCC Corp. had the following long-term debt at December 31: Collateral trust bonds, having securities…

A: long term bonds are the bonds which have a maturity of more than one year and when company on…

Q: At the end of the current year, Accounts Receivable has a balance of $162,430 Allowance for Doubtful…

A: Formulas: Net realizable value of accounts receivable = Accounts Receivable - Allowance for…

Q: Assuming no employees are subject to ceilings for their earnings, Harris Company has the following…

A: Salaries payable is the amount of salary which is due but not yet paid.

Q: Kellman Company Year 2 Year 1 Total current assets $600,000 $560,000 Total investments 60,000 40,000…

A: Introduction:- Earning per share means net earnings available to common shareholders by the…

Q: make T accounts

A: T accounts are the classified accounts under which all the recorded journal entries are posted. This…

Q: an runs a successful hairdressing salon in Riccarton. The type of costs incurred in providing…

A: Direct costs are the expenses directly incurred in connection with the service provided to the…

Q: The following information is available about electricity costs for the first six months of the year.…

A: Solution... Highest point = 6,200 machine hours Total cost = $5,980 Lowest point = 2,300…

Q: te payable, bank – due June 30, 2021 1,300,000 Note payable, bank – due June 30, 2022 2,100,000…

A: The statement of comprehensive income details the revenue, income, costs, or loss of the company…

Q: 3) From company (A)'s balance sheet, the Book value of assets was 2 Million USD and liabilities was…

A: Balance sheet approch of Net worth calculation = value of total assets less value of liabilities It…

Q: Using the following information calculate the Cost of Goods Sold (COGS) and Ending Inventory (El)…

A: GIVEN Using the following information calculate the Cost of Goods Sold (COGS) and Ending Inventory…

Q: The net income reported on the income statement for the current year was $250,000. Depreciation…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: ates Form W-2 on an annual basis to let the employer kn d during the year. Form W-2 to supply…

A: The answer has been mentioned below.

Q: The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on…

A: Solution: A cash flow statement is a financial statements that shows how changes in income and…

Q: Ltd for $80,000. During the current tax year on 10 January 2022, Greg sold these items as follows: •…

A: The net capital gain or loss is given as,

Q: Calculate his taxable income and tax liability.

A: Taxable Income is a part of the company's gross income that government subjected to the taxes. It is…

Q: gnment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false our... F…

A: Financial ratios helps to present the accounting data in a summarised and condensed form. Various…

Q: Which of the following can be income deferral transactions? I. Sale of municipal bonds II.…

A: Answer: Only statement II is correct. So, correct option is b.

Q: July 2020, Harriet sells a stamp from her stamp collection at a gain of $500. Harriet purchased the…

A: There are taxes on the capital gains that is to be paid but the tax on the capital gains depends on…

Q: Use the information in Scenario 9.15. What is the target inventory level needed to achieve a 90%…

A: A distributor of computer monitor purchases monitor from an overseas supplier. The distributor want…

Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the…

A: Solution: Budgeted price per T-shirt = $84,000 / 4200 = $20 Per T-shirt Actual price per T-shirt =…

Q: William, a CPA, owns a 75% interest in Burglar Concrete Company (BCC). BCC is organized as a…

A: Who is Related party? A related party is a person or an entity that is related to the reporting…

Q: Enter the following transactions of an antique shop in the accounts and extract a trial balance as…

A: Transferring Transaction to Ledger Accounts Dr. Bank Cr. Particulars Amount Particulars Amount…

Q: Fountain Ltd started a business on 1 December 2020 trading in office water coolers e month to 31…

A: For Inventory, valuation cost may be historical, current, or standard cost. historical cost shows…

Q: ZARA uses a First-In-First-Out (FIFO) perpetual inventory system and has the following purchases and…

A: In FIFO perpetual inventory method the first purchased units will be sold first. Here 22 units sold…

Q: Posters.com is a small Internet retailer of high-quality posters. The company has $810,000 in…

A: ROI is the return earned on investing in each asset of the entity. It further represents the…

Q: On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Under a nonqualified pension plan, I. the yearly earnings on the pension plan assets are taxable…

A: Non qualified Pension Plan are Non qualified because it does not comply with Employee Retirement…

Q: A fumiture salesperson can sell 60 pieces of fumitur miture as inventory would cost $50 over the…

A: Inventory costing, often known as inventory cost accounting, allows businesses to allocate expenses…

Q: 50000. He bought a life insurance policy and paid a premium of 50000 annually. He paid tuition fee…

A: Taxable Income is that the portion of a person’s or company’s gross income that the govt deems…

Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

A: Journal entry is the primary reporting of the business transactions in the books of the entity.

Q: А B $ 96.20 $ 78.00 $ 41.90 $ 43.50 $ 30.20 $ 13.90 g overhead $ 5.80 $ 4.70 r unit $ 6.50 $ 3.40 it…

A: The answer has been mentioned below.

Q: The following inventory details of LBC company Date Description Units Cost January 1,2020 Purchases…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method. Using…

Q: During the current year, Sokowski Manufacturing earned income of $327,600 from total sales of…

A: Sales margin means profit earned from the revenue generated from the sale of the goods or services.…

Q: Funnel Manufacturing Company has provided the follwoing information: Month Budgeted Sales January $…

A: Accounts payable means accounts of those suppliers from whom credit purchases are made and amount…

Q: Your client is using advanced matching in the bank feed to find a match for a deposit that was made…

A: Option E is correct answer - Quick books online create a resolving transaction that posts to a…

Q: Fill in the blank. ______ method is a costing method which includes beginning work-in-process…

A: There are various methods for valuation of inventory in cost accounting. Mainly, inventory is found…

Q: Exercise 11-10 (Algo) Recording payroll LO P2, P3 The following monthly data are taken from Ramirez…

A: Payroll Expenses It is important for the business entity to maintain the payroll payment and its…

Q: Which of the following would be helpful suggestions by Maria? (Sele

A: Bond issue is the issue which has been made by the company to get the funds from the public and that…

Q: Do b)

A: Disposal of Asset Account Format /Template Asset Disposal Account Date Account Name Debit…

Q: Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The…

A: Formula: Depreciation per unit = ( Asset cost - Salvage value ) / Total estimated Units. Deduction…

Q: Required information Use the following Information for the Qulck Study below. (Algo) Mami Solar…

A: Total Labor hours needed = Budgeted production units × Labor hours needed per unit = 4700×5 =23500…

Q: In December 2020, Joe's Company, engaged into a factoring armangement with Gaba's Bank (factor),…

A: The journal entries are the first step in the accounting process because a transaction is recorded…

Q: Chavez Company’s salaried employees earn four weeks’ vacation per year. Chavez estimated and must…

A: Introduction:- Journal entry is the first stage of accounting process. Which is used to record…

Q: Illustration 2. Business Combination Achieved in Stages and without transfer of consideration On…

A: Goodwill is an invaluable property acquired when one firm buys another. Goodwill is defined as the…

Q: prepare a trial balance on the sheet provided for the trial balance i included a photo the format…

A: Preparation of trial balance is the third phase in the accounting process. After posting the…

Q: Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and…

A: The production budgets are prepared to estimate the number of units to be purchased during the…

Q: Compare and contrast common stocks and preferred stocks

A: Stocks are securities issued by the companies to procure funds from outsiders. The two types of…

Question

Assuming a 360-day year, when a $11,918, 90-day, 10% interest-bearing note payable matures, total payment will be

a.$13,110

b.$1,192

c.$298

d.$12,216

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)