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Marina86 [1]
1 year ago
6

On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs

a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1. Required: Record the acceptance of the note on December 1, 2021. Record the interest collected on December 1 for 2022 and 2023, and the adjustment for interest revenue on December 31 for 2021, 2022, and 2023. Record the cash collection on December 1, 2024.
Business
1 answer:
Rufina [12.5K]1 year ago
8 0

Answer

Dec 1 2021                        Debit                           Credit

Note Receivable              90,000

Service Revenue                                                   90,000

Dec 1 2022

Cash                                  9,000

Interest Revenue                                                  9,000

Dec 1 2023                  

Cash                                9,000

Interest Revenue                                                  9,000

Dec 1 2024              

Cash                               99,000

Interest Revenue                                                  9,000

Note Receivable                                                   90,000

Dec 31 2021

Interest Receivable     750

Interest Revenue                                                        750

Dec 31 2022

Interest Receivable     750

Interest Revenue                                                        750

Dec 31 2023

Interest Receivable     750

Interest Revenue                                                        750

Explanation:

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3 0
1 year ago
At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor
Pie

Answer:

amount of the net source $15

Explanation:Working\ capital= Current\ assets-Current\ liabilities

source\ of\ cash =[Cash+AR+Inventory]- [Amount\ Payable]

cash = $183

received amount = $392

inventory =$714

payable amounts =$463

current assest = (183+392+714)-463=$826

current liabilities =(167+682+409-447)=$811

cash = $167

received amount = $409

inventory =$682

payable amounts =$447

current liabilities =(167+682+409-447)=$811

Hence since current liabilities is more than current assests, therefore there will be loss of accounts

Hence source of cash= (826-811) = $15.

7 0
2 years ago
Acme Enterprises began the new year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this
Sedaia [141]

Answer:

Acme's current balance of accounts payable is $6000

Explanation:

The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.

The closing balance can thus be calculated as:

Closing balance = Opening balance + Credit purchases - Payment to Accounts payable

Closing balance = 3000 + 4000 - 1000

Closing balance = $6000

8 0
2 years ago
Nolan owns 100% of the capital stock of both Twill Corp. and Webb Corp. Twill purchases merchandise inventory from Webb at 140%
Archy [21]

Answer: <em><u> $56,000 is  unadjusted revenue overstated in the combined income statement for year 2.</u></em>

Explanation:

Consolidated Cost of Goods Sold  = $40,000,

However, Twill realizes $56,000 ($40,000 × 140%) for a total of $96,000 as the cost of goods sold.

Thus,  $56,000[$96,000 – $40,000] should be eliminated from Cost of Goods Sold in the combined income statement for year 2.

7 0
2 years ago
The following data represent the probability distribution of the holding period returns for an investment in Lazy Rapids Kayaks
Brut [27]

Answer:

<u></u>

  • <u>17.5%</u>

Explanation:

The <em>expected return</em> is the weighted average of the expected returns in each scenario by its respective probability.

The <em>distribution of the holding period returns </em>(HPR) under three different scenarios is:

State of the economy    Scenario #(s)     Probability, p(s)    HPR

HPR Boom                         1                            0.336              28.40%

Normal growth                  2                           0.414                7.90%

Recession                          3                           0.25                18.90%

The calculations are:

        E(HPR) = 0.336\times 28.40\%+0.414\times 7.90\%+0.25\times 18.90\%

        E(HPR)=17.5\%

6 0
1 year ago
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