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andriy [413]
2 years ago
11

On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note requir

e Stratton to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:
Business
1 answer:
makvit [3.9K]2 years ago
3 0

Answer:

<em>Computation of the interest expense using the equation as shown below: </em>

Interest expense for year 1 = Notes payable * Interest rate

= $100,000 * 10%

= $7,000

​

Notes payable reduction in Year 1 = $14,238 - $7,000

= $7,238

                    General journal entry

Item                           Debit         Credit

<em>Notes payable          $7,745</em>

Interest expense       $6,493

Cash                                            $14,238

Workings

Interest expense = ($100,000 - $7,238) * 7%

= $92,762 * 7%

=$6,493

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Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $440 and has a unit cont
Tanya [424]

Answer:

$21,370

Explanation:

A composite unit is a set of different products grouped together in proportion to their sales mix. The unit is a basis for grouping products from different segments of an entity together with the aim of managing inventory levels, break even points, and sales.

The selling price of the composite unit can be calculated as follows:

||Bicycle model |No. of bicycles |Unit selling price |Total per composite unit

|Youth models| 5                         | 440                     |   2,200

|Adult models|   9                        | 990                     |   8,910

|Recreational models| 6              | 1,140                    |  <u>10,260</u>

                Selling price per composite unit               <u>21,370</u>

4 0
2 years ago
During July, the cost of goods manufactured at Xxis Corporation was $70,000. The beginning finished goods inventory was $19,000
JulsSmile [24]

Answer:

The cost of goods sold =  $74,000

Explanation:

<em>Cost of goods sold is computed as</em>

<em>Opening stock + production- closing inventory</em>

<em>The figure is always subtracted from the sales revenue to determine the gross profit</em>

The cost of goods of XXis Corporation

Cost of goods sold = 19,000 +  70,000 - 15,000

 = $74,000

The cost of goods sold =  $74,000

5 0
2 years ago
Peter Metcalf founded Black Diamond which creates, produces, and sells outdoor equipment. This is an example of
Liula [17]

Answer:

manufacturing organization

Explanation:

This is an example of a manufacturing organization. This is an organization that focuses on gathering all of the necessary ingredients, which are then placed in a specific process to which combines them to make a unique product. This product is then sold to other companies or individual customers to generate profit for the company. This is exactly what Black Diamond does in order to produce outdoor equipment.

5 0
2 years ago
Delores Bierlein paid a $200 deposit toward the rental of the Silver Room at Alex's Continental Inn for her wedding reception. L
sweet-ann [11.9K]

Answer:

It does not

Explanation:

In this question, we are asked to evaluate if a particular transaction carried out between a customer and an inn falls within the dictates of the local consumer protection law in the state.

Firstly, we look at what the local consumer protection law of the state talks about. It explicitly stated that customers should get receipts when suppliers receive deposits from them. Thus, this make the receipt act as the first thing to have if there would be any claim under the consumer protection law for the transaction carried out in the state.

Now, looking at the particular scenario we have, the customer paid for the room, but he was not issued a receipt. This makes the case not treatable within the consumer protection law of the state as the receipt which should have been a prerequisite for further exploration is not available

3 0
2 years ago
Read 2 more answers
Webster's has sales of $649,000 and a profit margin of 7.2 percent. the annual depreciation expense is $102,600. what is the amo
Dimas [21]
Operating cash flow = ($649,000 x .072) + $102,600 = $149,328. In financial accounting, operating cash flow or as called as OCF in which cash flow provided by operations, cash flow from operating activities or as called as CFO or free cash flow from operations or as called as FCFO bring up to the sum of cash a company produces from the revenues it brings in not including costs related with long-term investment on capital items.
7 0
2 years ago
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