How much is her EBIT at the end of the first month?
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Question: How much is her EBIT at the end of the first month?
We are at the end of the first month of her operations. She sold one half of her CDs sbought at the beginning to satisfy her customers. Individual customers paid in cash, but she also sold some CDs to disco clubs and these customers received invoices, which are due in two months. The table below summarizes her revenues in the first month:
individual customers USD 90 000
disco club 1 USD 40 000
disco club 2 USD 50 000
At the end of the month Mrs. Hiphop paid in cash a rent (USD 25 000), bank loan interest (USD 1000) and her salary (USD 30 000) - everything paid and used during the first month.
She has also received an invoice for utilities used during the first month (USD 2 000), which will be paid in 30 days. Equipment is
Bank loan is not repaid at the moment, just the interest. Tax rate is 10% and will be paid immediately in cash.
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- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and the dealership finances the remaining 90% in-house. How much will the car dealership record in Accounts Receivable for this customer? A. $31,500 B. $19,250 C. $8,750 D. $7,000
- On January 1, a flower shop contracts with customers to provide flowers for their wedding on June 2. The total contract price is $3,000, payable in equal installments for the next six months on the first of each month (with the first payment due January 1). How much will be recorded as revenue during the month of April?Question: How much is her EBITDA at the end of the first month? We are at the end of the first month of her operations. She sold one half of her CDs sbought at the beginning to satisfy her customers. Individual customers paid in cash, but she also sold some CDs to disco clubs and these customers received invoices, which are due in two months. The table below summarizes her revenues in the first month: individual customers USD 90 000 disco club 1 USD 40 000 disco club 2 USD 50 000 At the end of the month Mrs. Hiphop paid in cash a rent (USD 25 000), bank loan interest (USD 1000) and her salary (USD 30 000) - everything paid and used during the first month. She has also received an invoice for utilities used during the first month (USD 2 000), which will be paid in 30 days. Equipment is depreciated using straight line method for 20 months starting from the first month (now). During the first month she…Question: How much is her gross profit at the end of the first month? We are at the end of the first month of her operations. She sold one half of her CDs sbought at the beginning to satisfy her customers. Individual customers paid in cash, but she also sold some CDs to disco clubs and these customers received invoices, which are due in two months. The table below summarizes her revenues in the first month: individual customers USD 90 000 disco club 1 USD 40 000 disco club 2 USD 50 000 At the end of the month Mrs. Hiphop paid in cash a rent (USD 25 000), bank loan interest (USD 1000) and her salary (USD 30 000) - everything paid and used during the first month. She has also received an invoice for utilities used during the first month (USD 2 000), which will be paid in 30 days. Equipment is depreciated using straight line method for 20 months starting from the first month (now). During the first month…
- Question: Prepare her income statement for the first monthWe are at the end of the first month of her operations. She sold one half of her CDs sbought at the beginning to satisfy her customers. Individual customers paid in cash, but she also sold some CDs to disco clubs and these customers received invoices, which are due in two months. The table below summarizes her revenues in the first month: individual customers USD 90 000 disco club 1 USD 40 000 disco club 2 USD 50 000 At the end of the month Mrs. Hiphop paid in cash a rent (USD 25 000), bank loan interest (USD 1000) and her salary (USD 30 000) - everything paid and used during the first month. She has also received an invoice for utilities used during the first month (USD 2 000), which will be paid in 30 days. Equipment is depreciated using straight line method for 20 months starting from the first month (now). During the first month she bought and…Ena Sharples opened a retail shop on January 1. She invested $10,000 of her own money. She rented a store for $2,000 per month, paying first and last month’s rent on January 1. She bought store fittings for $5,000 in cash. She bought goods for resale at a cost of $10,000, on credit, payable on February 15. She incurred other expenses of $1,000 in January, all of which were paid for in cash. Her cash sales were $15,000, and she also sold $2,000 on credit, which she expects to collect by the end of February. At the end of January her inventory had a cost of $3,000. Amortization on the store fittings is estimated at $100 for the month. The sales revenue recognized in January was?During the month of March, Harley's Computer Services made purchases on account totaling $46,100. Also, during the month of March, Harley was paid $11,900 by a customer for services to be provided in the future and paid $38,200 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,600, what is the balance in accounts payable at the end of March? Mutiple Choice 86,500 98,400 7,900 74,600 6,200
