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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.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. $7,000Tom&Dick sells computer software. All credittransactions are done through credit cards, so there is a100% probability of receiving the money, but there is await of up to 10 days while the transaction is beingprocessed. When Tom&Dick prepares financialstatements at the end of its first business year, it should*a. exclude accounts receivable, because customersmay not pay b. include accounts receivable as an assetbecause of the matching principle c. exclude accountsreceivable as the amount is variable with interest ratesd. include accounts receivable as an asset because ofthe cost principle e. none of the above
- what was my supply exspense for the month if i wrote a check for $14,000, then I return $1500.00 in damaged supplies for a cash refund of $1500, then spent $10,000.00 more on supplies payable in 30 days . After inventory it shows I have $9400.00 worth of supplies left on hand.Knowing that you have some accounting experience, your friend David has sought your adviceregarding a business that he intends purchasing. The balance sheet for the business shows total assetsof $170 000 and total liabilities of $100 000, out of which $40 000 is a bank loan. A review of thebusiness operations show that a considerable portion of the inventory is obsolete stock for which thereis limited demand. Further, many of the accounts receivable are overdue by more than 60 days. Theaccounts receivable and inventory are carried at their gross amount and cost value respectively on thebalance sheet.As you are an Accounting student, you have been asked to advise the following:a. Explain to David the form of organisation he can adopt for the business? Briefly discuss theadvantages and disadvantages of each form of organisation.b. David has a very limited understanding of the terms Assets and Liabilities. Explain to David thethree essential characteristics necessary to consider an item…Knowing that you have some accounting experience, your friend David has sought your adviceregarding a business that he intends purchasing. The balance sheet for the business shows total assetsof $170 000 and total liabilities of $100 000, out of which $40 000 is a bank loan. A review of thebusiness operations show that a considerable portion of the inventory is obsolete stock for which thereis limited demand. Further, many of the accounts receivable are overdue by more than 60 days. Theaccounts receivable and inventory are carried at their gross amount and cost value respectively on thebalance sheet.As you are an Accounting student, you have been asked to advise the following:a. Explain to David the form of organisation he can adopt for the business? Briefly discuss theadvantages and disadvantages of each form of organisation.b. David has a very limited understanding of the terms Assets and Liabilities. Explain to David thethree essential characteristics necessary to consider an item…
- A customer buys a company product on the internet for $1,000 with bitcoins. At the end of the year he bit coins are worth $5,000. The company's income statements show sales of $1,000. Why?On July 01, 2020, Maria initially invested P200,000 cash into Maria Merchandising. On the same date, she paid P45,000 for six months rent on the store space, P10,000 for business licenses and permits, and P50,000 for various store furniture. She also bought P60,000 worth of office supplies on account with the intention to sell them at a higher price. However, the next day, the business received a P1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. On July 6, the business bought from 45 Supplies Shop P5,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. Francisco, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Sam for P16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs. Aslani merchandise for P12,000 on terms 2/10, n/30. On July 30, Mr. Boom paid the business P42,000 for merchandise bought…Gerard Appliances, Inc., is a small manufacturer of washing machines and dryers. It sells its products to large, established discount retailers that market the appliances under their own names. Gerard generally sells the appliances on trade credit terms ofn/60, but if a customer wants a longer term, it will accept a note with a term of up to nine months. At present, the company is having cash flow troubles and needs $10 million immediately. Its Cash balance is $400,000, its Accounts Receivable balance is $4.6 million, and its Notes Receivable balance is $7.4 million.(a) How might Gerard Appliances use its accounts receivable and notes receivable to raise the cash it needs?(b) What are its prospects for raising the needed cash?
- Sage Hill, Inc., spent $91,000 in attorney fees while developing the trade name of its new product, the Mean Bean Machine.Prepare the journal entries to record the $91,000 expenditure and the first year’s amortization, using an 10-year life. Use the account title "Trade Names". (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.Strom Inc. provided interior design services for $170,000 to customers using debit cards. Assume the bank charges 0.5% for all debit card transactions. Which of the following is correct? Multiple Choice Strom Inc. would have Debit Card expenses in the amount of $850 and Service Revenue of $169,150 Strom Inc. would have Debit Card expenses in the amount of $850 and Service Revenue of $170,000 Strom Inc. would have an increase in Cash of $169,150 and Service Revenue of $169,150 Strom Inc. would have an increase in Cash of $170,000 and Service Revenue of $169,150 None of the choices are correctBob collected $55,000 from customers who previously purchased products on account. Bob learned that one of his customers went bankrupt and can not pay him. He wrote it off for $1,500. Prepare the necessary entries