On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery truck Interest is paid monthly in arrears on the first day of the next month. Required: Prepare the company's yearend adjusting entry or entries, and the journal entry to record the interest payment on January 1, 2022.

Q: Find transfer price for the division A. Desired return on investment 28% Fixed assets=500,000…

A: Transfer pricing was used by the division of an entity to fix its price for transferring their…

Q: bought land, buildings equipment by issuing shares. The estimated fair value of the assets are:…

A: The assets acquired against issuing shares are recorded at fair value of the assets.

Q: Dec. 15 will receive ___________.

A: A shareholders with 100 shares of a 10 par stock who bought another 100 shares on Dec. 15 will…

Q: Use the following information for problems 3 to 5 LO P2 (Algo) [The following information applies to…

A: Rental Revenue 26000 Consulting Revenue 37000 Total Revenue 63000       Salaries…

Q: 1 Transferred cash from a personal bank account in exchange for stock, $50,000 mo 2 Purchased $8,000…

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

Q: ark Donald, the company's controller standard costs for each 5-foot table a standards based on the…

A: Direct material price variation (also known as direct material spending/rate variance) is the…

Q: An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in…

A:

Q: On 1 July 2021, King Ltd acquired all the share capital of Queen Ltd for $1,800,000, and on that…

A: The following table shows the calculation of goodwill on acquisition: Particulars Amount Amount…

Q: baby Co has these selected data: Net accounts receivable December 31, 2007 P900,000 Net accounts…

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

Q: Note: If E=P28,091.16 and N = P11,213.00, what is the value of D? E= Total Earnings D- Deduction N=…

A: Formula used : Net pay = Total earnings - Deductions

Q: During the year a grinding machine was purchased for 700,000. Expenses of cartage and installation…

A: Types of depreciation are straight line method, written down value method etc. Every company has its…

Q: Future value and simple interest are two types of interest. The following amounts due by its…

A: The question is related to Simple Interest and the Future Value Simple Interest = P × r × t P =…

Q: How much is in the fund at the end of 12 years, if it accumulated at 5% for the first 8 years, and…

A: Balance in the fund at the end of any period is the amount of money which includes the deposits…

Q: Accounts Receivable Equipment Accounts Payable re the transactions of Jab Less Services. ab invested…

A: Journal Entries: When the business transactions are recorded by way of debit and credit in the…

Q: Which of the following would have an effect on the presentation of past years' comparable financial…

A: Financial Statement- Financial statements contain information about an entity's financial activity…

Q: Learning Task 3: Classify the normal balance of each account. ON the space provided before each…

A:

Q: Present perfect an action that began in the past and True O False O

A: The present perfect tense is used to express actions that started in the past and are still ongoing…

Q: service station performs oil changes for cars each oil change has a standard time of .25 direct…

A: Introduction: A labor variance is a cost difference depending on labor rates and hours worked. A…

Q: Overhead is calculated by Amanzi Company based on Direct Labor hours. Amanzi forecasts Overhead to…

A: Formula:   Predetermined overhead rate  Estimated overhead Direct labor hour

Q: Aracel Engineering completed the following transactions in the month of June. Jenna Aracel,…

A: Journal Entries - All the transactions takes place in the financial year in the company primarily…

Q: What happens when the auditor cannot issue the standard unqualified/unmodified audit report?

A: Auditor can issue standard unqualified/unmodified audit report if he satisfy that financial…

Q: Given the following information, determine the amount of cash on the balance sheet, assuming that…

A: Introduction: Bills, coins, balance sheets, payment orders, and checks are all examples of cash.…

Q: An amount paid or earned for the use of money. A. interest B. lender C. principal D. term 2. An…

A: Since you have asked multiple questions, the answer to the first three questions is given. For…

Q: The following scenario relates to 5 questions. Bear Co has developed a new model of television. The…

A: Actual learning rate means the rate at which the labor is learning more efficiently. In simple words…

Q: Department A is the first stage of Lovely Company's production cycle. The following information is…

A: Cost accounting is one of the important branch of accounting. Under this, various type of costs are…

Q: The construction division of WTG Construction estimates that the annual maintenance cost of a…

A: The construction division of WTG Construction estimates that the annual maintenance cost of a…

Q: PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts…

A: A liquidity ratio that attempts to measure a firm's ability to pay short-term or one-year…

Q: Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries.…

A: Introduction: Customer margin is defined as a customer's total revenue (from all transactions) less…

Q: Raw materials consumed =15,000 Direct labour charges =9,000 Machine hours worked -900 hrs Machine…

A: Cost per unit can be calculated based on total sales and total cost incurred. Total cost incurred…

Q: Gildan Activewear Inc. reported the following selected financial information (all in U.S. $…

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

Q: • The standard labour budget for CTF of 800 units with detail information as follows: 3hours/unit…

A: We need to set up flexible budget in this case because of this question gives standard data for 800…

Q: With reasons examine the following statements are correct or incorrect: 1. Preparation of financial…

A: In the process of audit, an auditor will determine all possible evidences during the audit and…

Q: Learning Task 2: Classify the following accounts into the five major account categories. On the…

A:

Q: 1. A company purchased a delivery van for $35,000. The company was given a $3,000 cash discount by…

A: The cost of the delivery van includes freight expenses, delivery charges, transportation charges,…

Q: Shanice works in finance for a small manufacturing company and is working on next year’s budget. She…

A: Introduction: Financial planning is one of the most critical responsibilities. All procedures…

Q: Chulu own a retail shop.  The following information is available from the few records kept for the…

A: Buyers are provided a set of financial statements every year that provide information on the…

Q: Learning Task 3: Classify the normal balance of each account. ON the space provided before each…

A: In the context of the given question, we are required to classify the normal balance of each…

Q: Description Business Organization a. Riley and Kay own Speedy Packages, a courier service. Both are…

A: Introduction: A partnership is a contractual obligation between 2 or more persons to manage and…

Q: Daube Industries’ operations for the month of October are summarized as follows:   Provided $2,500…

A: Introduction: A journal entry is frequently used to record a transaction in an organization's…

Q: Your client, Keith Buffalo Leasing Company, is preparing a contract to lease a machine to Souvenirs…

A: The annuity factor of 10% for 27 years is determined to be 9.23720, based on the factor table. Thus,…

Q: 4. The Fernandez Corporation was incorporated on September 1, 2021 and was authorized to issue share…

A: Shareholder’s equity is the section in the balance sheet in which equities of the owner is included.…

Q: Learning Task 3: Classify the normal balance of each account. ON the space provided before each…

A: Normal balance represents the side on which the opening balance of the account is to be recorded.

Q: Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on…

A: Bond interest and bond discount are amortized over the life of the bonds. Under the effective…

Q: Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and…

A: The variance is the difference between the actual data and standard output of the production.  The…

Q: TABLE P3.3 Balance Sheet, Peachtree Construction (31 December 2016) Assets Current assets Cash…

A: The debt-to-equity ratio is a leverage ratio that measure overall debt and financial liabilities…

Q: Required: Part A: Calculate the value of ending WIP, and prepare an Income Statement for the month…

A: A manufacturer uses process costing. Process costing is used when homogenous items are to be…

Q: Julia has property income of £80,000 for the tax year 2021-22. This is before any deduction in…

A: The finance cost tax reducer is 20% of the lessor of the following:-(a) Finance Cost(b) Property…

Q: Aracel Engineering completed the following transactions in the month of June. Jenna Aracel,…

A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…

Q: The following accounting events (A-I) affected the assets, liabilities, and owners’ equity of the…

A: i have explained increase and decrease  in the assets and liabilities in a separate format for…

Q: arning Task 2: assify the following accounts into the five major account categories. On the space…

A: The different accounts in business have debit or credit balance. The assets, expenses, dividend,…

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.