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Amanda [17]
2 years ago
5

Lemming makes an $18,750, 120-day, 8% cash loan to Notions Co. on November 1. Lemming's end-of-period adjusting entry on Decembe

r 31 should be: Multiple Choice Debit Interest Revenue $500; credit Notes Receivable $500. Debit Interest Receivable $500; credit Interest Revenue $500. Debit Interest Receivable $250; credit Interest Revenue $250. Debit Notes Receivable $500; credit Interest Revenue $500. Debit Cash for $250; credit Notes Receivable $250.
Business
1 answer:
GREYUIT [131]2 years ago
4 0

Answer:

Interest Receivable (Dr.)           $250

            Interest Revenue (Cr.)                $250

Explanation:

Notions Co. has borrowed money from Lemming and will have to pay cost for it which is a source of fund (revenue) for Lemming. According to the Accrual concept of accounting, revenue should be recognized when earned and not when cash is received.  At year end, the interest revenue of two months has been accrued, so it needs to be recognized in the Books of Lemming.

⇒ 18,750 * 8% = 1,500 p.a.

OR Interest Revenue for two months = (1,500/12) * 2 = $250.

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Organizational learning works best when there is integrated thinking and acting at all levels of the organization, according to
Sati [7]

Answer: True

Explanation:

According to Peter Senge, he described team learning as a team skill which is required to be practiced by the team members that are involved so that they will all be able to develop their learning skills collectively.

Organizational learning works best when there is integrated thinking and acting at all levels of the organization.

5 0
2 years ago
Please write out, step-by-step, how you obtained the correct answer for this math problem.
Neko [114]

Answer:

The correct answer is "$7,630".

Explanation:

Assuming there are four weeks in a month, then

Joe's income will be:

= 23.50\times 40\times 4

= 3,760 ($)

Zola's income will be:

= 21.50\times (40+5)\times 4

= 21.50\times 45\times 4

= 3,870 ($)

hence,

The combined gross monthly income will be:

= Jose's \ income+Zola's \ income

= 3,760+3,870

= 7,630 ($)

3 0
2 years ago
Calculate the net income earned during the year. Assume that the change to stockholder's equity results only from net income ear
Nutka1998 [239]

Answer:

The net income earned during the year is $ 5,000

Explanation:

The first point to kn ow is the accounting equation is A=L+SE

So to calculate the opening stockholders equity we can rearrange the accounting equation to be:

A-L = SE

so opening SE is

Assets $ 50,000 - Liabilities $ 40,000 =  Stockholders Equity $ 10,000

Ending Stockholders equity is:

Assets $ 35,000 - Liabilities $ 20,000 = Stockholders Equity $ 15,000

Since the question mentions that the change in stockholders equity is only due to net income, the increase of $ 5,000 represents the net income for 2019.

7 0
2 years ago
Ranada Company manufactures and sells sportswear products. Ranada uses activity-based costing to determine the cost of the custo
kramer

Answer:

Per unit customer costs = $4.5 per unit

Explanation:

Under activity based costing cost are allocated based on per activity rate.

Customer return processing activity rate = $45 per return

Shipping activity rate = $10 per shipment

for Product 1

Total cost of shipment and return will be as follows:

Shipment = 1,200 X $10 = $12,000

Returns = 150 X $10 = $1,500

Total = $12,000 + $1,500 = $13,500

Total units = 3,000

Per unit customer costs = $13,500/3,000 units = $4.5 per unit

4 0
2 years ago
Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare th
BARSIC [14]

Answer: Decrease by $9,800

Explanation:

It is shown that fees of $9,800 were earned during the month from clients who had paid in advance. Unearned fees are liabilities because they represent revenue that a company made for services it has not delivered yet.

When the company delivers the service like these ones just did, they will reduce this liability because they have now earned this revenue by delivering the service.

Omega will therefore reduce their unearned fees account by $9,800.  

7 0
2 years ago
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