On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12 months. Nees has a December 31 year-end. Calculate the amount of interest revenue Nees will report in its 2021 and 2022 income statements. a. 2021 = $300; 2022 = $600.b. 2021 = $600; 2022 = $300.c. 2021 = $900; 2022 = $0.d. 2021 = $0; 2022 = $900.

Q: On December 31, 2020, Coronado Company has $6,976,000 of short-term debt in the form of notes…

A: Balance Sheet includes: Assets accounts Liabilities accounts Capital accounts Assets accounts…

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

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A: Interest Expenses:- It is an amount which one pays over the principal amount of loan or mortgage…

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Q: Sam company started business in 2020. It sells printers with a three-year warranty. Sam company…

A: Part (1) Amount should Sam Company report as warranty expense in 2020  Sales (units) = 7500  Selling…

Q: On January 1, 2021, Hestia Bank extended a 12%, P1,000,000 loan to Ares, Inc. Principal is due on…

A: Amount of loan is P1,000,000. Rate 12%

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A: Interest revenue Middleton Corp. will report during 2022 = Face value of note receivable x rate of…

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A: Prepare partial balance sheet for Holmes Company at December 31, 2020.

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A: Formula: Warranty expense for 2021 = Warranty Liability at the end of 2021 + Actual Warranty…

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A: Here in this question we are required to find out the total interest income to be presented on the…

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A: Lingatong Company Receive P10,000  Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…

Q: On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019,…

A: Given that,  Notes payable as on Jan 1 2020 = P1200000  Rate of interest = 12%

Q: On January 1, 2020, Vaughn Manufacturing borrows $ 3150000 from National Bank at 12% annual…

A: Computation of Cash inflow and outflow On borrowing 315000, Company has to pay interest of (315000 x…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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A: Given, Cost of building = $65000 Cash down payment = $5000 Notes Payable = $65000-$5000=$60000…

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A: Warranty expense during the year = Net sales x estimated % of warranty expense

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A: Warranty  expense  is the total warranty  claim for product  =2%+4%+6% =12%

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A: Note payable is one of the liability of the business, on which regular interest payments needs to be…

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A: Sale price = P250000 merchandise costing P150,000  Gross profit is P100000 Gross profit ratio=…

Q: On January 1, 2011, ACB Inc. gave a loan to XYZ Enterprises amounting to P100,000 and received a two…

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Q: On September 1, 2020, a company borrowed on a P5,400,000 note payable from a bank. The note bears…

A: Accrued interest payable on December 31, 2021 = Note payable outstanding on September 1, 2021 x rate…

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A: The interest expenses are to be shown on the in balance sheet each year.

Q: On December 31, 2023, Sandy Company has a Note Receivable of $6,000. The note will be collected in…

A: Current asset can be converted into cash within 12 months whereas long term assets has a life of…

Q: On October 1, 2021, Oberley Corporation loans one of its employees $25,000 and accepts a 12-month,…

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A: The note was issued for 11 month on June 1,2020.

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A: According to this question, we prepare the journal entries with reference to the given scenarios.…

Q: On December 1, 2021, your company borrowed $48,000, a portion of which is to be repaid each year on…

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A: The question is based on the concept of Financial Accounting.

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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.