Abardeen corporation borrowed $90,000 from the bank on october 1, year 1. The note had an 8 percent annual rate of interest and matured on march 31, year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did abardeen pay for interest in year 1? b. What amount of interest expense was recognized on the year 1 income statement? c. What amount of total liabilities was reported on the december 31, year 1, balance sheet? d. What total amount of cash was paid to the bank on march 31, year 2, for principal and interest? e. What amount of interest expense was reported on the year 2 income statement?.

Answers

Answer 1

a) The amount of cash that Abardeenn Corporation paid for interest in year 1 is $0.

b) The amount of interest expense recognized on the year 1 income statement is $1,800 ($90,000 x 8% x 3/12).

c) The amount of total liabilities reported on the December 31, year 1 balance sheet is $91,800 ($90,000 + $1,800).

d) The total amount of cash paid to the bank on March 31, Year 2, for principal and interest is $93,600 ($90,000 + ($90,000 x 8% x 6/12).

e) The amount of interest expense reported on the year income statement is $1,800 ($90,000 x 8% x 3/12).

How is interest calculated?

Interest can be computed by applying the interest rate to the amount of notes payable based on the period under coverage.

For example, the interest amount for a six month is not the same as the interest amount for a full year, as interests are always prorated.

Data and Calculations:

Amount of Note Payable = $90,000

Annual interest rate = 8%

Maturity date = March 31, Year 2

Maturity period = 6 months

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Related Questions

Orion iron corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. assume its accounting records provided the following information at the end of the annual accounting period, december 31.
transactions units unit cost
a. inventory, beginning 300 $ 12
for the year:
b. purchase, april 11 900 10
c. purchase, june 1 800 13
d. sale, may 1 (sold for $40 per unit) 300
e. sale, july 3 (sold for $40 per unit) 600
f. operating expenses (excluding income tax expense), $19,500
calculate the cost of ending inventory and the cost of goods sold using the fifo and lifo methods.

Answers

The computation of the ending inventory and cost of goods sold for Orion Iron Corporation, using the FIFO and LIFO methods, is as follows:

FIFO method:

Ending inventory = $13,400 ($13 x 800 + $10 x 300)

Cost of goods sod = $9,600 ($23,000 - $13,400)

LIFO method:

Ending inventory = $11,600 ($12 x 300 + $10 x 800)

Cost of goods sod = $11,400 ($23,000 - $11,600)

Data and Calculations:

Transactions                   units     unit cost    Total Cost     Total Revenue

a. inventory, beginning   300           $ 12        $3,600

b. Purchase, April 11        900              10          9,000

c. Purchase, June 1         800              13         10,400

Total units                    2,000                       $23,000

d. Sale, May 1                 -300  $40                                       $12,000

e. Sale, July 3                -600  $40                                      $24,000

Total sales units             900                                              $36,000

Ending inventory          1,100 (2,000 - 900)

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What is the maximum amount of good y that can be purchased if x and y are the only two goods available for purchase and px = $10, py = $20, x = 0, and m = 400?

Answers

The maximum amount of good y that can be bought if x and y are the only two goods that are available for purchase is 20.

What is a budget set?

This is the amount of the combinations of two goods that a consumer is able to buy at the given market price with his income.

We have the equation

P1X + P2Y = 400

Definition of terms

P1 = price of first good = $10

p2 = price of second good = $20

x = units = 0

Put the values in the equation above

$10*0 + $20*y = 400

20y = 400

y = 20

We conclude that the amount of good y that can be bought is 20.

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The maximum amount of good y that the business can purchased is 20 units.

What is income allocation?

The income allocation in the given case can be understood as the proper segregation of income for purchasing two goods at the market price, that is best feasible for the business within their income.

Computation:

Given,

[tex]\rm{P}_1x + P2y = 400[/tex]

[tex]\rm{P_1[/tex] is $10

[tex]\rm{P_2[/tex] is $20

x units are 0

[tex]\begin{aligned}\text{P}_1x + \text{P}_2y& = 400\\\\\$10\times0 + \$20\times y& = 400\\\\20y &= 400\\\\ y&= 20\;\text{units}\end{aligned}[/tex]

Therefore, when the price of good y is $20 the business can purchase 20 units.

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Which eoc configuration allows personnel to function in the eoc?.

Answers

Answer: The Departmental Structure allows personnel to function in the EOC with minimal preparation or startup time.

Explanation:

At which stage in the product life cycle do sales experience their most rapid increase?.

Answers

Answer:

The growth stage

Explanation:

As product awareness increases, customers are more likely to purchase the item and sales increase. The success of a product in one area can lead to the product being introduced into other market segments.

After the product is developed the detergent company researches what their
competitors are charging for the product. Which of the 4 P's would this best
describe?
Place
Product
Promotion
Price

Answers

the answer is price

Explanation:

they are making sure who charges what

Answer:

the answer is price

Explanation:

you are welcome

What is one financial opportunity you could enjoy if you didn’t have to worry about making a monthly student loan payment?.

Answers

A financial opportunity that one could enjoy if one doesn't have to worry about making a monthly student loan payment is investing the money.

What is a loan?

It should be noted that a loan simply means the money that's given to another party that will be repaid in the future with interest.

In this case, the financial opportunity that one could enjoy if one doesn't have to worry about making a monthly student loan payment is investing the money.

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How old do you have to be to start working at a true job.

Answers

Answer:

As a general rule, the FLSA sets 14 years old as the minimum age for employment, and limits the number of hours worked by minors under the age of 16.

With an adjustable rate mortgage, if the rate of inflation jumps, then the nominal rate on the mortgage will

Answers

Answer:

rise, since it is adjustable and there is inflation.

Explanation:

When would you include an executive summary in a report?

Answers

Answer: Is B. When the report is 30 Pages long

Explanation: because I know

The United Nations (UN) has many goals. Which statement below is one of its goals?

Question 2 options:

to provide tax cuts to the ultra wealthy throughout the world


to promote anti-vaccination campaigns


to end extreme poverty


to stay out of assisting in national elections, leaving the issue of voting to each individual nation or country

Answers

Answer:

to promote anti- vaccination campaigns

Which term works best as a title for the list?

?

Is a factor of production

Refers to natural resources

Includes trees, oil, and salt

A. Labor

B. Land

C. Capital

D. Entrepreneur

Answers

Personally I believe it’s B and so I hope this helps!
B. land

The Land is th term that works best as a title for the list that it is a factor of production. Hence, option B is appropriate.

What is the meaning of Land?

The solid terrestrial surface of Earth that is not covered by an ocean or other body of water is referred to as land, sometimes known as dry land, ground, or earth. It encompasses all continents and islands and accounts for 29.2% of the Earth's surface. The solid terrestrial surface of Earth that is not covered by an ocean or other body of water is referred to as land, sometimes known as dry land, ground, or earth.

The term "land" refers to all natural features that have been given to a place or piece of property, including the surrounding landscape, fields, woods, minerals, climatic conditions, fauna, and water bodies or sources.

The word "land" comes from the Old English word "land," which also meant "defined section of the earth's surface, the home region of a person or a people, territory marked," and "ground, soil."

Hence, option B is correct.

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What type of negotiation strategy requires the supplier to open its books to the purchasers?.

Answers

Answer:

Cost-based price model

Explanation:

How do trade agreements of international organizations affect trade? by incentivizing the development of trade policies by eliminating tariffs and taxes on imports and exports by encouraging countries to provide open access to trade by helping smaller countries compete in the world market.

Answers

One way in which trade agreements by international organizations affect trade is by encouraging countries to provide open access to trade.

How do International Organizations affect trade?

International organizations agree to treaties with nations that encourage those nations to allow free access to trade.

This ensures that more trade happens because people and nations would be free to import and export which would increase trade volumes as people take advantage.

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Answer: C. by encouraging countries to provide open access to trade

Explanation:

right on edge 2022

2. List three interpersonal skills that sales associates need.

Answers

Answer:

problem solving, communication, organizational

Explanation:

these help you be the best business associate there is.

What step is the most important in the decision making model?.

Answers

Answer:

Identifying or stating the problem

Explanation:

Raphael, Alex, and Clancy are lumberjacks who live next to a forest that is open to logging; in other words, anyone is free to use the forest for logging. Assume that these men are the only three lumberjacks who log in this forest and that the forest is large enough for all three lumberjacks to log intensively at the same time.

Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack cares only about his own profitability and not about the state of the forest.

Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log intensively, the forest will become useless in the future. Of course, logging intensively earns a lumberjack more money and greater profit because he can sell more trees

Answers

The solutions which would ensure that the forest is sustainable in the long run assuming that the regulation is enforceable are:

Convert the forest to private property, and allow the owner to sell logging rights.Outlaw logging intensively.

What is LumberJacking?

This refers to the cutting down of trees for the purpose of making woods.

With this in mind, we are aware that because lumberjacking is not regulated, then anyone can use the forest for logging and because of this, independent lumberjacks come to the forest to cut down trees and in the process hurts the sustainability of the forest.

Hence, we can see that the way to ensure that the forest is sustainable in the long run assuming that the regulation is enforceable is to outlaw logging intensively and also to convert the forest to private property, and allow the owner to sell logging rights.

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Elasticity measures the responsiveness of Multiple choice question. one variable to changes in another. one variable to changes in many other variables. many variables to changes in many variables. many variables to changes in one variable

Answers

One variable to changes in another

Elasticity measures the responsiveness of one variable to changes in another. The correct option is A.

What are the measures of elasticity?

The price of the commodity, the price of related goods, and consumer income are the three quantifiable factors that determine demand and are used to calculate its elasticity. Price, cross, and income elasticities of demand are the three types of elasticities of demand.

The degree to which the quantity of a good is demanded in response to a change in its price is known as its elasticity of demand. The formula for calculating it involves dividing the proportionate change in quantity demanded by the proportionate change in the price level.

Elasticity is a measure of a variable's receptivity to changes in another variable. Elasticities are unitless, so you can measure the underlying variables in any way you like and they won't affect the elasticity. Elasticity and slope are not the same.

Thus, the ideal selection is option A.

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In almost every organization offering flexible work hour plans, the time of the day during which every employee must be at work is called _____

Answers

Answer:

Abuse of work

Explanation:

Because a lerson must work for 8hours

Michael’s personal property in his college dorm room is insured by an endorsement on his parents’ homeowners insurance. The deductible is $2,000. A flood destroys Michael’s textbooks, which cost $570.93 tablet computer, which cost $868.91 backpack, which cost $141.37 and clothing, valued at $500. How much of the loss will the insurance policy not cover?

Answers

Answer:

81.21.

Explanation:

all you would need to do is add up all the values then subtract 2000.

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Assume you are making $989 monthly payments on your amortized mortgage. The amount of each payment that is applied to the principal balance:________.

a. Decreases with each succeeding payment.

b. Increases with each succeeding payment.

c. Is constant throughout the loan term.

d. Fluctuates monthly with changes in market interest rates

Answers

Answer:

I got you!

Explanation:

B. increases with each succeeding payment.

______ risk is reduced as more securities are added to the portfolio. Multiple select question. Marketwide Diversifiable Unsystematic Company-specific

Answers

Answer:

a. diversifiable b. company-specific d. unsystematic

Explanation:

How should the CEO open his remarks to draw in the audience and ensure his introduction is effective

Answers

The inference shows that the CEO can draw on the audience by anticipating that moving will require major adjustment.

What is an inference?

An inference simply means the conclusion that can be reduced based on the information given in a literary work.

In this case, the inference shows that the CEO case draw on the audience by anticipating that moving will require major adjustment.

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________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

Answers

Brand equity is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation.

A service business is less subject to price competition than a product business. True
or False?
Select one:
O True
O False

Answers

Answer: True

Explanation:

How much does it cost to hike the appalachian trail?.

Answers

Trail ranges from $5,000 to $7,000 for a 5- to 7-month hike; that amount includes gear, trail resupply, and town expenses. Expect to spend about $1,000 a month per person.

What criteria cannot be used to create a custom segment?.

Answers

Answer:

The segment builder lets you create the component filters of a segment based on Analytics dimensions and metrics.You choose a dimension or metric a comparative operator and you enter a value to set the condition for the filter.

Explanation:

hope this helps if not please let me now

In a graph, ____ lines can be added to compare performance of competing products.

Answers

Marketers often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer. Hence, they make use of product line.

In a graph, product lines can be added to compare performance of competing products.

Product lines

A product line can contain one product or hundreds. The number of products in a product line refer to its product line depth, while the number of separate product lines owned by a company is the product line width (or breadth).

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The stage of the new-product development process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as

Answers

The screening and evaluation stage of the new product development is the process that evaluates new product ideas.

What is the screening and evaluation stage of product development?

This is the stage in this process that has to do with following of ideas and the generation of concepts.

In this stage, models are scored and the judgments of people based on experience is taken into consideration.

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One option to generate a favorable ______ variance for net operating income is to increase the number of clients.

Answers

Answer:

activity

Explanation:

What are the two key parties to a promissory note?.

Answers

Answer:

The party making the promise to pay is called the maker. The party to whom payment is to be made is called the payee.

Explanation:

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