Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry for the payment should include a Round your answer to the nearest whole dollar. Oa. debit to Interest Payable for $1,188 Ob. debit to Interest Expense for $1,188 Oc. credit to Cash for $79,200 Od. credit to Cash for $86,328

Q: Question 39 If the selling price per unit is $10, the unit contribution margin is $5, and total…

A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise.…

Q: A company is considering investment of k1,000,000 in a project. The  following are the forecasts,…

A: Year Cash Inflows PVF @10 % Present Value 1 10000 0.9091 9091 2 40000 0.8265 40000 3 60000…

Q: Assume the following taxpayer information: The taxpayer is a South African manufacturing company…

A: particulars Amount Amount Sale Proceeds   560000  Lower of cost price or Sale proceeds 230000…

Q: There is no significant relationship between audit fees and non audit fees paid by the client…

A: Auditing is the verification of the accounting statement and for which auditor provides the opinion…

Q: Complete the following table given this information: (Do not round intermediate calculations.)…

A: Introduction: Depreciation is an accounting technique for allocating the cost of the useful life of…

Q: Question 2 4 Considering whether to use historical cost or fair value relates to which of the…

A: Accounting Policies refer to specific accounting principles and methods of applying these principles…

Q: Accounting Act §5-3.2. paragraph regulates depreciation of property, plant and equipment. What…

A: Depreciation refers to writing off the cost of a asset over its useful life in the ratio of economic…

Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: Problem 1 Metal Farication Corporation manufactures their product in two departments. For the month…

A: Process costing is an cost accounting method which is used where the products are manufactured by…

Q: Which of the following is subject to income tax? SSS and GSIS Philippine Health Insurance…

A: Subject to income tax means on which of the following income tax is levied. SSS (Social security…

Q: Use the following information for questions 1 to 7. The Income Statement for the year 2021 of Mira…

A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In…

Q: The following is select account information for August Sundries. Sales: $850,360, Sales Returns and

A: Formula used: Gross margin = ( Gross profit / Net sales ) x 100

Q: A local college bookstore has a beginning inventory costing $80,000 and an ending inventory costing…

A: Inventory Turnover = Cost of goods sold / Average Inventory Average Inventory = ( Ending Inventory +…

Q: Increase (Decrease) (Decrease) Cash $79,000 Accounts Payable $(51,000) Accounts Receivable (net)…

A: Changes in stockholders equity can be found out by subtracting the change in assets with change in…

Q: Could the accountant be sure that all dividends due on the client's marketable securities have been…

A: Dividends: This is the amount of cash distributed to stockholders by a company from its earnings in…

Q: Do you want to make a double entry? On November 7, 2021, a fire broke out at the store, destroying…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Journal entries Window World extended credit to customer Nile Jenkins in the amount of $134,900 for…

A: N/150 means term credit is allowed to 150 days. On non payment of debts on time it's recorded as bad…

Q: What are some challenges and weaknesses that a firm may find in the budgeting process?

A: The lack of proper monitoring and review, lack of clear policy and procedures on budgets, poor…

Q: John has an income of 160000 , What would be his total tax liability based on the tax structure ?…

A: Given income of John is 160000 In case of slab rate of tax, tax liability has to be calculated based…

Q: For each of the following items (A-L) indicate on which financial statement you would expect to find…

A: * As per Bartleby policy, if multiple questions are asked then answer first three only. Balance…

Q: Tamara goes on a spring break trip with her school to visit historical sites in Italy. She purchases…

A: Introduction: A credit card report is a statement of your credit card spending for a given billing…

Q: What are operating expenses?

A: Expenses refers to the money outflow or the assets outflow to another company or to individual…

Q: McKenzie Sales, Ltd. Comparative Income Statement Sales Cost of goods sold Gross margin This Year…

A: Formula used: Each line item value % = [ Each line item value / Sales value ] x 100

Q: Explain the term income statement.

A: The income statement (IS) is one of three financial statements (FS) which records the financial…

Q: stock that originally cost $6.30 per liter. Material U48N is used in the company's main product and…

A: Relevant cost is a term used in managerial accounting to describe avoidable expenses that occur…

Q: Dickonson Products is a division of a major corporation. The following data are for the last year of…

A: Given data:

Q: Prepare a General Journal entry for the following transaction: On December 17, On Your Mark paid…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: In the Malthusian model, population grows exponentially while food production grows linearly. For…

A: Lets understand the basics. For calculating population after 63 years, we need to use below formula.…

Q: Requirement: Explain the implications of the above issues and your responsibility as an auditor.

A: Implications of the above issue:  GAAP is the generally accepted accounting principles i.e…

Q: If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses…

A: Formula used: Break even sales dollars = Break even sales units x Sales price per unit

Q: The following are deficiencies in internal controls over cash. a. When the cashier isn't available,…

A: Inadequacies in the deployment or execution of internal controls are known as internal control…

Q: A water-based paint containing 25.0 wt% pigment and the rest is water sells for PhP 900/kg. Another…

A:

Q: A new merchandising business, Dazzle Corporation started its operations last January 1, 2020.…

A: Adjusting entries are those journal entries which are passed at the end of accounting period in…

Q: A company's current net operating income is $16,800 and its average operating assets are $80,000.…

A: The residual income of the new project is determined by taking the difference between the estimated…

Q: Car.com bought a Toyota for $28,000. The Toyota has a life expectancy of 10 years with a residual…

A: The depreciation expense is charged on the basis of usage of assets by the business. Depreciation…

Q: depreciation would be calculated immediately. Greymare’s borrowing rate is 12%. Assume this is a…

A: Assuming depreciation is on straight line basis. Each year depreciation would be (83000/8) $10375 If…

Q: Statement of stockholders' equity Noric Cruises Inc. began the month of October with the following…

A: The statement of shareholders' equity is one of the financial statements of the business, which…

Q: You are planning the audit of Bluechip Ltd, a company with investments in listed securities that you…

A: Answer  (C)    14.2 the case of materiality is The level that that auditor can choose on the basis…

Q: The following account balances were provided by Kate's Consulting Company as of December 31, 2022.…

A: Formula used: Ending capital = Beginning capital + Net profit - Drawings made

Q: Catena's Marketing Company has the following adjusted trial balance at the end of the current year.…

A: Total assets are the all type of resources being held by the business. Asset turnover is one of the…

Q: Ending Capital 4 The following account balances were provided by Kate's Consulting Company as of…

A: Ending capital represents the owners' share in the business at the end of the year.

Q: Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of…

A: Formula: Debt ratio = ( Total liabilities / Total Assets ) x 100

Q: Explain certified public accountant (CPA).

A: Accountant refers to the professional who performs the accounting functions like financial statement…

Q: TCL Company had the following transactions during 2021 1. Sales of P4,500 on account 2. Collected…

A: Accrual Basis of Accounting - a. Under the Accrual basis of accounting, revenue is recognized when…

Q: You are the financial controller of Pack West (Pty) Ltd. Your company is experiencing difficulties…

A: For calculation of cash balance at the end of period add receipt from debtors and cash sales in…

Q: DePaul Corporation has acquired 600 machines in a business combination.  DePaul does not intend to…

A: Here discuss about the details of the determination of the fair value using the different market…

Q: How do you determine the dollar amount of owners’ equity for a sole proprietorship, or a…

A: The accounting equation states that assets equal to sum of liabilities and equity. Assets =…

Q: GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of our new…

A: Fixed cost refers to those which which remains same i.e. it doesn't changes with the changing level…

Q: What is the difference between accounting and business government

A: Accounting: It is the process of recording any financial transactions incurred in the financial year…

Q: 5. If a unit of inventory has declined in value below original cost, but the market value exceeds…

A: The procedure of determining the actual value of inventories at the end of the year is known as…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.