Answer: Their Accounts Receivable balance will not be accurate.
The income account will show duplicate income.
Explanation:
Based on the information given in the question, the problem that this will cause is that there'll be an incorrect balance that is shown in the balance of the accounts receivable.
Also, there'll be a duplicate income entry that is created in the income account.
Answer: Interest revenue for $2400
Explanation:
From the question, we are informed that Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit for Interest revenue for $2400.
This was calculated in the following way:
= $60,000 × 8% × 1/2
= $60,000 × 0.08 × 0.5
= $2400 interest revenue
Answer:
5.5 Hours
Explanation:
The main difference among both the drivers is the number of jobs and the difference of working hours can only be determined by adding number of jobs. Sofia has two more jobs compared to victor. Following is the method to calculate the working hours:
4+0.75(2)=5.5 hours
Sofia is expected to work for 5.5 hours
Answer:
The second alternative is the best option for the borrower as it provides the less amount of interest expense.
Explanation:
We solve for the interest expense on each alternative and pick the lowest:
(1) common note.
Principal 420,000.00
time 0.25
rate 0.04000
Amount 424,138.43
Interest expense: 4,138.43
(2) Discounted note:
Maturity $420,000.00
time 0.25
rate 0.04000
PV 415,901.9490
THe borrower recieve this amount and then, return 420,000
Interest over time 4,098.05099
Answer and Explanation:
The Journal entries are shown below:-
1. Insurance expenses Dr, $2,200
To Prepaid insurance $2,200
(Being insurance coverage expired is recorded)
2. Supplies expenses Dr, $11,300 ($7,000 + $3,000 + $1,300)
To Supplies $11,300
(Being supplies expenses is recorded)
These two entries should be considered
