Question

Polly Flynn borrowed $5,000 for 60 days at 7%. On day 20 Polly made a $2,000 partial payment ( assume ordinary interest). What is her final payment? How much did she save by making the partial payment?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Accounting For Decision Making

Effective Interest Rate

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: IFRS 9-4 Beckham Company constructed a warehouse for $280,000. Beckham estimates that the warehouse...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: What are the 5 ways the PBO can change?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of ...

Q: On May 1, 2017, Mount Company enters into a contract to transfer a product to Eric Company on Septem...

A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for...

Q: Discuss the correction of errors in more detail.

A: Errors in Accounting: Error is a mistake committed in book keeping.

Q: Nate Beggs signs a 1-year contract with BlueBox Video. The terms of the contract are that Nate is re...

A: Revenue recognition principle:   The organization recognizes the revenue in the accounting period af...

Q: Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATIONCompa...

A: Formula: Increase or decrease = Value of 2022 - value of 2021.

Q: Part 1: Fixed Assets Think of a business where you have worked, visited or perhaps hope to own one d...

A: Part 1: The business we are considering here is Mobile phones assembly unit. The main function of th...

Q: The following data are taken from the financial statements of Cullumber Company.     2022   2...

A: Accounts receivable turnover = Net sales on account / Average Accounts receivable   Average collecti...

Q: What are trading securities?

A: Trading securities are a form of investment by a company. Here securities are being purchased for th...

Q: Describe presentation and disclosure regarding revenue.

A: Disclosure:   A disclosure is a statement that recognizes the policies of the business as it serves ...

Q: Rode Inc. incurred a net operating loss of $500,000 in 2017. Combined income for 2015 and 2016 was $...

A: Prepare the journal entry to record the loss carry back:

Q: Lorance Corporation issued $850,000, 9%, 10-year bonds on January 1, 2015, for $797,036. This price ...

A: If the bonds are issued at price less than the face value then it is said to be issued at discount.

Q: Please help solve this question:

A: To Determine – Total cost function As we know that total cost has two major components 1) variable c...

Q: Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to th...

A: Journal: Recording of a business transactions in a chronological order.

Q: Please solve the question ASAP.

A: Stockholders’ equity:   The claims of owners on a company’s resources, after the liabilities are pai...

Q: Example 20 in the textbook happens to involve a contribution to the Girl Scouts. Don’t know about yo...

A: A charitable contribution refers to a donation or a gift which is made voluntarily to a qualified or...

Q: A plant asset with a cost of R 900,000 and accumulated depreciation of R 800,000 and sold for R 80,0...

A: Definition: Assets: These are the resources owned and controlled by business and used to produce be...

Q: On March 15th Ron went to the bank to borrow $3,000 at 8.5% interest. Ron plans to repay the loan Ju...

A: Ordinary interest is an interest that is computed on the basis of a 360-day year instead of a 365-da...

Q: Paul and Anita Tucker are hardly the only taxpayers ever to have exaggerated the amount of their cas...

A: Cash Charitable Contributions are a general way of contributing to specific foundations and charitie...

Q: Explain a principal-agent relationship and its significance to revenue recognition.

A: Click to see the answer

Q: Accounting Question

A: When equity or preference stock is issued by a business, it increases the assets (cash) and increase...

Q: EQUIVALENT UNITS—WEIGHTED AVERAGE METHODThe following data are for four independent process-costing ...

A: Formulas:

Q: For the just completed year, Hanna Company had a net income of $35,000. Balances in the company’scur...

A: Workings: Given values: Hanna company had a net income of $ 35000

Q: The benefits from merger or acquisition and how to value the transaction?

A: Introduction: Merger and acquisition (M&A) means the consolidation of two or more companies for ...

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $1...

A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate ...

Q: Tasty Bread makes and supplies bread throughout the state of Kansas. Three types of bread are produc...

A: Click to see the answer

Q: Explain the importance of a contract in the revenue recognition process.

A: Click to see the answer

Q: What are the two of the qualitative characteristics of accounting information that contribute to its...

A: Click to see the answer

Q: What are some examples of variable consideration? What are the two approaches for estimating variabl...

A: Definition: Variable consideration: It is an amount that is included in the contract as consideratio...

Q: On November 1, the firm of Sails, Welch, and Greenberg decided to liquidate its partnership. The par...

A: 1 (a) (b)

Q: n addition to an incremental analysis, qualitative factors should be included in an business situati...

A: In addition to the incremental analysis, the qualitative factors has to be considered before the div...

Q: agroupof doctors operates a joint surgery they are planning to provide a private clinic where minor ...

A: Any investment in a business proposal requires careful analysis of the total amount of initial inves...

Q: Define Vertical analysis

A: Financial Statement:   They are annual reports of an organization summarizing the financial activiti...

Q: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the ti...

Q: Devise a coding scheme using block and sequential codes for the following chart of accounts for Jens...

A:  

Q: Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $210,000 ...

A: Partnership is the relationship between two or more person for do business. Each partner contributes...

Q: Shown below are comparative balance sheets for Novak Company. Novak CompanyComparative Balance ...

A: Click to see the answer

Q: Explain when does a contract meet the definition of a lease?

A: According to IFRS 16 a lease is defined as, "a contract, or part of a contract, that conveys the rig...

Q: Describe about the primitive rights of shareholders?

A: Primitive rights of shareholders: Primitive rights are a contractual clause giving a shareholder the...

Q: Describe about the foreign currency risk.

A: Foreign currency- As we know every country has its own currencies in which it operates. Hence, curre...

Q: Explicit consideration of taxes is a necessary aspect of any complete economic study of an investmen...

A: Explicit consideration of taxes is a necessary aspect of any complete economic study of an investmen...

Q: Department G had 1,800 units 25% completed at the beginning of the period, 13,600 units were complet...

A: In first In first Out method, the units produced first are dispatched first.

Q: If the market rate of interest is greater than the contractual rate of interest, bonds will sell a. ...

A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par o...

Q: How do the tax laws and financial accounting standards differ?

A: Financial Reporting:   Financial reporting is the process of disclosing the financial results of the...

Q: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. ...

A: 1) multiple-step income statement. Druid Hills Co. Income statement For the year ended May 31, 20Y8 ...

Q: Write down what are the disadvantages of shareholders equity?

A: Equity is one of the common sources to raise finance. Whenever a company requires finance it can iss...

Q: Compute and interpretfinancial ratios that would beuseful to a long-term creditor.

A: Click to see the answer

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A: Definition: Amortized cost: Amortization is the process of spreading a capital expenditure over a ce...

Q: What is a quantity standard?

A: A quantity standard is the amount of materials that should be used in the production of a unit.  Qua...

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment ar...