on june 30, 2024, the esquire company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. the note requires payment of $49,000 on march 31, 2025. the fair value of the merchandise exchanged is $46,060. esquire views the financing component of this contract as significant. required: prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any december 31, 2024 interest accrual, and the march 31, 2025 collection. what is the effective interest rate on the note?
Answers
The journal entries for December 31, 2024 are Interest Receivable - $1,469, Interest Income - $1,469 and for March 31, 2025 are Cash - $49,000, Financing Receivable - $2,940, Interest Receivable - $1,469
The effective interest rate on the note is -8.3%.
Journal entries:
June 30, 2024
Accounts Receivable - $49,000
Sales - $46,060
Financing Receivable - $2,940
To record the sale of merchandise on a noninterest-bearing note with a significant financing component.
December 31, 2024
Interest Receivable - $1,469
Interest Income - $1,469
To accrue interest on the note using the effective interest rate.
March 31, 2025
Cash - $49,000
Financing Receivable - $2,940
Interest Receivable - $1,469
Interest Income - $1,469
To record the collection of the note and the final interest payment.
The effective interest rate on the note can be calculated using the following formula:
Effective interest rate = (Total interest expense / Net proceeds received) x (360 / n)
Where:
Total interest expense = Fair value of merchandise - Net proceeds received
Net proceeds received = Face value of the note
n = Number of days between the transaction date and the maturity date
Plugging in the numbers, we get:
Total interest expense = $46,060 - $49,000 = -$2,940 (negative means interest income)
Net proceeds received = $49,000
n = 273 (360 days - 87 days between June 30, 2024, and March 31, 2025)
Effective interest rate = (-$2,940 / $49,000) x (360 / 273) = -0.083 or -8.3%
The negative value means that Esquire is earning interest income rather than paying interest expense on the note. The December 31, 2024, journal entry accrues interest income using this rate. The March 31, 2025, journal entry records the final collection of the note and the interest income earned.
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Related Questions
YO CAN YALL SEND HELP MY BRAIN ISNT WORKING TODAY
Which of the following statements are true of hacking? Check all of the boxes that apply.
-It is the practice of cutting network cables to damage a network infrastructure.
-It is the practice of finding weaknesses in a computer or computer network.
-It is always illegal.
-It is sometimes practiced by network security professionals.
Answers
Answer:
B and D
Explanation:
The statements true of hacking are
It is the practice of finding weaknesses in a computer or computer network.It is sometimes practiced by network security professionals.What is hacking?Computer hackers who are motivated by monetary gain engage in illegal conduct when they attempt to attack digital equipment like computers. This is known as hacking.
They start experimenting with different applications while they look for online instruction. Due to their inexperience and potential for initial perception as little more than an internet troll or beginner.
As opposed to building security systems, breaching them involves greater knowledge and skill. Hackers cannot be neatly grouped together according to any absolute standards in order to gain confidential information.
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Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.
a.legal and irresponsible
b.legal and responsible
c.illegal but responsible
d.legal but irresponsible
Answers
Answer:
d
Explanation:
Using data from the infographic, what would you say is the value in
creating a plan for paying for college, rather than starting college without
a specific plan in mind?
Answers
Making a plan for paying for college is beneficial since it allows individuals to make informed financial decisions and avoid incurring excessive debt.
Students can estimate the costs of their higher education, investigate potential funding sources such as scholarships, grants, and loans, and create a budget to manage their expenses if they have a specific plan in mind.
This proactive strategy enables students to better prepare for the financial responsibilities of education and make strategic decisions to reduce the long-term load of student loans.
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what features does each financial institutions have
Answers
The rate of return is very high in case of investment made in this type of institution.
It also gives a high rated consultancy to the customers for their beneficial investments.
It also serve as a depository for their customers.
88 million people live on less than $1. 00 a day. These people are said to be living in _____________.
Answers
88 million people live on less than $1. 00 a day. These people are said to be living in absolute poverty.
Poverty is about no longer having enough money to fulfill primary wishes which include meals, garb and safe haven. but, poverty is extra, an awful lot more than just now not having enough cash. the arena bank corporation describes poverty in this manner: “Poverty is hunger. Poverty is loss of safe haven.
We will outline poverty as the circumstance in which the fundamental needs of a own family, like meals, refuge, clothing, and schooling are not fulfilled. it is able to lead to different troubles like poor literacy, unemployment, malnutrition, and so on. A terrible individual is not capable of get education due to lack of cash and consequently stays unemployed.
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Jesse got a job at a fitness center. He thought his first paycheck would be $200 for working 20 hours at $10 an hour. Instead, the paycheck was for $180. Which was most likely taken from his check?
A.) taxes
B.) interest
C.) profit
D.) dividends
Answers
Answer:
Taxes
Explanation:
The answer to the question is taxes.
Answer:
Hey there! It sounds like Jesse got a job at a fitness center and was expecting his first paycheck to be for $200, but it ended up being for $180 instead. That's a bummer!
Paychecks often have various deductions taken out, like taxes, insurance premiums, and retirement contributions. It's possible that some or all of these deductions were taken out of Jesse's paycheck, which is why it was for less than he expected.
Taxes are a common deduction from paychecks, so it's likely that some taxes were taken out. But don't worry, this is just part of the process of getting paid and is completely normal.
It's probably not interest, profit, or dividends, since those things are usually associated with investments or financial products, not employment.
Describe some of the powerful marketing tactics used by the credit card industry?
Answers
Answer:
nice packaging in mail, introductory benefits, free gifts, barbie example
In 2017, the price of cotton rose in Egypt and some farmers planned to switch from growing rice to growing cotton. Does this fact illustrate the law of demand or the law of supply? Explain your answer. Why would rice production decrease?
Answers
The given scenario illustrates the law of supply. The law of supply states that an increase in the price of a good or service will lead to an increase in the quantity supplied, and a decrease in price will lead to a decrease in the quantity supplied.
In 2017, the price of cotton rose in Egypt, leading to an increase in the quantity of cotton supplied by farmers. Consequently, some farmers planned to switch from growing rice to growing cotton, indicating a shift in supply.A decrease in rice production would occur because of the opportunity cost of switching from rice to cotton. Farmers would have to sacrifice rice production to produce cotton, which they believe would provide higher profits due to the increased demand for cotton and higher prices. Therefore, the increase in cotton prices encourages farmers to shift production from rice to cotton, decreasing rice supply and increasing cotton supply. The law of supply indicates that an increase in supply leads to a decrease in price, which could cause rice prices to decrease.
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When a consumer has previous experience with a product or brand, it is likely the level of involvement would _______.a. decreaseb. become more complicatedc. increased. remain the same
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The brand is considered to have negative brand equity if customers are willing to pay more for a generic product than for a branded one.
What does consumer decision-making process evaluation of alternatives entail?In order to make decisions during the evaluation of options, consumers frequently use their evoke, inept, and insert sets. Consumers' "evoked set," or the brands and goods they contrast, is an illustration of the potential solutions they are taking into account.
In terms of decision-making, what is an alternative?Among the options for action, an alternative is one. We cannot make a decision without options. A good option is one that is: (1) under our power, (2) notably different, (3) possibly alluring, and (4) attainable.
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What is true about the length of a loan’s term?
(1 point
Answers
The length of loan's term refers to the period of time over which the borrower is expected to repay the loan.
What is a loan?A loan is a sum of money that is borrowed from a lender with the agreement that it will be repaid with interest over a set period of time. Loans are often used to finance large purchases, such as a home, car, or business venture, that an individual or organization cannot afford to pay for upfront. The terms of the loan agreement include the loan amount, interest rate, repayment schedule, and any additional fees or penalties. The lender may require collateral, such as property or assets, to secure the loan in case the borrower is unable to repay it. Loans can be obtained from banks, credit unions, online lenders, or other financial institutions, and the specific terms and requirements vary depending on the lender and the type of loan.
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A company's gross profit (or gross margin) was $83,750 and its net sales were $347,800. Its gross margin ratio is: Multiple Choice 4.2% 24.1% 75.9%. $83.750.
Answers
Company's gross margin ratio is 24.1%. The correct answer among the multiple-choice options you provided is 24.1%.
What is the gross margin ratio of a company that had a gross profit of $83,750 and net sales of $347,800?Hi! To calculate a company's gross margin ratio, you can use the following formula:
Gross Margin Ratio = (Gross Profit / Net Sales) * 100
In this case, the company's gross profit is $83,750 and its net sales are $347,800. Using the formula:
Gross Margin Ratio = ($83,750 / $347,800) * 100
Now, divide $83,750 by $347,800:
Gross Margin Ratio = 0.24086 * 100
Multiply the result by 100 to get the percentage:
Gross Margin Ratio = 24.086%
Round the result to one decimal place:
Gross Margin Ratio = 24.1%
So, the company's gross margin ratio is 24.1%. The correct answer among the multiple-choice options you provided is 24.1%.
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which state-registered investment advisers must report that they take custody on form adv? i an adviser that is affiliated with a parent bank or trust company ii an adviser that directly deducts management fees each quarter from client accounts iii an adviser that has discretionary authority over client accounts under a limited power of attorney iv an adviser that acts as a trustee for a client where the grantor of the trust is the client
Answers
Option (iii) an adviser that has discretionary authority over client accounts under a limited power of attorney, is correct option.
Under the U.S. Investment Act, money managers, investment consultants, and financial planners are regulated as "investment advisers" in the country.
Which state's registered adviser qualifies as an adviser when it has custody of client funds?When is it deemed that a State-registered counsel has custody of client funds? According to NASAA, if an adviser prepays $500 in advising fees (or more) six months or more before performing services, such adviser is deemed to have seized custody of the client's funds.
Who must a financial advisor notify if they have custody of a client's assets?Terms in this set (33) An adviser shall give advance written notice to the Administrator of its plan to retain custody of client assets and securities. An Administrator may occasionally enact a regulation that preventing a financial advisor from obtaining ownership.
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Which of the following is a true statement?
1) FAS Market Development and Export Assistance partners with over 100 cooperator groups
2) FTC stands for Federal Trade Commission
3) FAS stands for Federal Agricultural Sector
4) Imports are goods produced in one country then shipped to another country
Answers
Answer:
2) FTC stands for Federal Trade Commission
Explanation:
The true statement is that, FTC stands for Federal Trade Commission.
The Federal Trade Commission (FTC) is an agency of the government of the United States of America saddled with the responsibility of promoting consumer protection and the enforcement of all civil antitrust laws.
Basically, the laws formulated or established by the FTC are to provide protection for consumers of various goods and services while requiring that businesses do not make false claims about them. Also, the Federal Trade Commission (FTC) is responsible for competition regulations among manufacturers of goods and services provided for the consumers.
Attracting and retaining employees with the skills, abilities, and experience to help an organization achieve its goals is a key component of a _____ management system.
Answers
Attracting and retaining employees with the skills, abilities, and experience is a key component of a human resource management system.
What is human resource management system?Human resource management system has to do with carrying out specific function such as effectively managing everything that has to do with human resource.
Human resource management system is important for companies as it enables them to choose employees that has the best skills and experience to move the company forward so as to enable the company achieve their goals.
Therefore attracting and retaining employees is a key component of a human resource management system.
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Hill & Scott Company makes financial calculators. During the current year, Hill & Scott manufactured 106,700 financial calculators. Finished goods inventory had the following units on hand: January 1 1,386 units December 31 1,144 units If each financial calculator had a per-unit product cost of $123.20, what was the cost of finished goods inventory on December 31? (Note: Round answer to two decimal places.)
$140,940.80
$141,120.50
$24,640.75
None of these are correct.
Answers
None of the given answer are correct, the finished goods inventory correct answer 106,942
The third and final category of inventory that manufacturing companies utilise for accounting purposes includes the items that are sold to customers. Completed goods are those that have concluded the manufacturing process or have been purchased fully finished but have not yet been given to clients. Finished goods that have been purchased are referred to as merchandise. An inventory of finished goods is the last step of inventories for items that have already completed the production process. Finished goods are a type of inventory that manufacturing businesses can only keep on hand. These products are those whose manufacturing is complete but which have not yet been distributed or sold to merchants or distributors.
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once a sterile field is established, items on the field may only be handled with sterile gloves.
Answers
A nurse is performing a sterile dressing change. If new sterile items or supplies are needed, " with sterile forceps or hands wearing sterile gloves" they be added to the sterile field. Therefore, option A is correct.
If a sterile dressing change requires the addition of new sterile objects or instruments to the sterile field, they should be handled with sterile forceps or sterile gloved hands. This is important to maintain field sterility and prevent contamination. Sterile forceps or sterile gloved hands reduce the risk of introducing pathogens and contaminants by ensuring that new items are not touched by non-sterile surfaces or hands.
To maintain sterility during medical procedures, it is important to follow proper sterilization techniques and procedures.
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The complete question is:
A nurse is performing a sterile dressing change. If new sterile items or supplies are needed, how can they be added to the sterile field?
a. with sterile forceps or hands wearing sterile gloves
b. by carefully handling them with clean hands
c. with clean forceps that touch only the outermost part of the item
d. by clean hands wearing clean latex gloves
How to convince people to buy your wine.
Answers
Answer and Explanation:
Talk them into it..
Answer:
either make an ad, or make the wine actually delicous and do not click-bait. click-baiting will have your chances on people buying your wine to a lower chance.
In your own words, explain why we pay taxes.
Answers
Answer: To help support public schools and the economy.
Explanation:
Sarah Smith, a sole proprietor, has the following projected figures for next year: Variable cost per unit $148.00 Contribution margin per unit $ 52.00 Total fixed costs $ 550,000 What is the contribution margin ratio
Answers
Sarah Smith's contribution margin ratio for next year is projected to be 26%.
The contribution margin ratio for Sarah Smith's business can be calculated as follows:
Contribution margin per unit = Sales price per unit - Variable cost per unit
Contribution margin per unit = $200.00 - $148.00
Contribution margin per unit = $52.00
Contribution margin ratio = Contribution margin per unit / Sales price per unit
Contribution margin ratio = $52.00 / $200.00
Contribution margin ratio = 0.26 or 26%
Therefore, Sarah Smith's contribution margin ratio is 26%. This means that for every dollar of sales revenue, 26 cents are available to cover her fixed costs and provide profit.
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what is the equity income in matador to be reported by northridge in 2019
Answers
We would need more particular information about the ownership percentage and financial performance of Northridge's investment in Matador in order to calculate the equity income that Northridge must disclose for its interest in Matador in 2019.
Equity income is the portion of net income that one company receives as compensation for its investment in another. It is determined by dividing Matador's net income for the specified time period by Northridge's ownership stake in Matador. It is impossible to provide a precise estimate of the equity income that Northridge will need to disclose for its investment in Matador in 2019 without these specific information.
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when paychecks are distributed to employees on december 30, 2016, employee george is ill and does not claim his check until january 2017. for what year must this income be reported?
Answers
If George receives his paycheck in January 2017 which was entitled to be given to him in December 30, 2016, then the income will be reported for the year 2016.
An income can be described as the amount of money you make from doing a particular job or business. In the field of business, the income you make in a specific month is reported for that specified month. Even if you get late in getting the payments, then also the income is reported for that particular month and year in which the work for that income was done.
Hence, although employee George is claiming his check in January 2017, as his income was made for the year 2016, hence the income will be reported for the year 2016.
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Critically explain Robbins definition of economics?
Answers
Answer:
In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
Explanation:
If a revenue in total for a month was $9,550, fixed expenses were $9,000 and variable expenses were $300 what would be the total profit/loss for the month?
Answers
Answer:
the answer would be 250
because 9,000-9,550 = 550 -300= 230
there are three commonly used price indexes. which index focuses specifically on intermediate goods?
Answers
The price index that focuses specifically on intermediate goods is producer price index.
What is the producer price index?Price index measures the changes in price level over time. Price indexes are used to measure inflation. The types of price indexes include consumer price index, producer price index and GDP deflator.
Producer price index measures the goods and services produced. Producer price index measures the changes in price of a good before it is sold to consumers.
The consumer price index measures the changes in price of a basket of good purchased by consumers. .
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
GDP deflator measures the changes in price of the gross domestic product.
GDP deflator = (nominal GDP / real GDP) x 100
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outline 2 reasons for completing assigned tasks daily
Answers
In summary, it is important to complete your tasks because it helps you feel better, helps you identify what you should be working on and together that means you complete more tasks.
Outline why it is important for a business owner to respond to technological and global issues when establishing a business?
Answers
Technology enables an increase in the efficiency of systems, products, and services. It helps track and streamline strategies, hold records go with the flow, and control contacts and employee records.
In reality, this expanded efficiency in operation enables lessened costs as well as allows the commercial enterprise to develop swiftly.
Technology has vital consequences on commercial enterprise operations. Irrespective of the scale of your business enterprise, technology has both tangible and intangible advantages that will help you make money and produce the results your customers demand. Technological infrastructure affects the subculture, performance, and relationships of a business.
The use of technology has made commercial enterprises and clients closer in many areas. E-mail and Social Media are getting used for answering queries related to products and services with clients. Giving customers all feasible methods to contact the agency is simple with the latest technology and packages over the internet.
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Information related to Harwick Co. is presented below.
A. Prepare the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.
B. Assume that Harwick Co. paid the balance due to Botham Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
1. On April 5, purchased merchandise from Botham Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Botham.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Botham Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Botham Company in full.
E5-2 General Journal
Date Account Titles Debit Credit
(a)
Apr. 5
6
7
8
15
(b)
May 4
Answers
Answer:
A.
April 5
Dr Merchandise inventory $23,000
Cr Accounts payable $23,000
April 6
Dr Merchandise inventory $900
Cr Cash $900
April 7
Dr Equipment $26,000
Cr Accounts payable $26,000
April 8
Dr Accounts payable $3,000
Cr Merchandise inventory $3,000
April 15
Dr Accounts payable $20,000
Cr Cash $19,600
Cr Merchandise inventory $400
B. Dr Accounts payable $20,000
Cr Cash $20,000
Explanation:
A. Preparation of the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system.
April 5
Dr Merchandise inventory $23,000
Cr Accounts payable $23,000
April 6
Dr Merchandise inventory $900
Cr Cash $900
April 7
Dr Equipment $26,000
Cr Accounts payable $26,000
April 8
Dr Accounts payable $3,000
Cr Merchandise inventory $3,000
April 15
Dr Accounts payable $20,000
($23,000-$3,000)
Cr Cash $19,600
[$20,000*(100%-2%)]
Cr Merchandise inventory $400
($20,000-$19,600)
B. Preparation of the journal entry to record this payment Assume that Harwick Co. paid the balance due to Botham Company on May 4 instead of April 15.
May 4
Dr Accounts payable $20,000
Cr Cash $20,000
($23,000-$3,000)
now suppose that domestic tire producers in the united states convince the government to impose a tariff (tax) on imported tires with the goal of reducing the number of tires imported by 50% (half of what is imported with free trade).
Answers
Question: Now suppose that domestic tire producers in the United States convince the government to impose a tariff (tax) on imported tires with the goal of reducing the number of tires imported.
50% (half of what is imported with free trade). Answer: To understand the impact of a tariff on imported tires, let's break it down step-by-step:
1. What is a tariff? A tariff is a tax imposed by the government on imported goods. It increases the price of imported goods, making them more expensive for consumers.50% (half of what is imported with free trade). Answer: To understand the impact of a tariff on imported tires, let's break it down step-by-step:
2. How will the tariff reduce the number of imported tires?
By imposing a tariff on imported tires, the government is effectively increasing their cost. As a result, the price of imported tires will rise, making them less competitive compared to domestically produced tires.
3. How will the tariff affect the demand for imported tires?
With the increase in price due to the tariff, the demand for imported tires is likely to decrease. Consumers may find it more affordable to purchase domestically produced tires instead.
4. How will the tariff impact domestic tire producers?
The tariff provides domestic tire producers with a competitive advantage. As the price of imported tires increases, consumers are more likely to choose domestically produced tires. This increased demand can lead to higher sales and profits for domestic tire producers.
5. How will the tariff impact consumers?
Consumers will face higher prices for imported tires due to the tariff. However, they may have more options to choose from domestically produced tires, which could potentially offer better quality or lower prices than the imported ones.
6. Will the tariff achieve the goal of reducing imported tires by 50%?
The effectiveness of the tariff in achieving the goal of reducing imported tires by 50% depends on several factors. It will largely depend on the price elasticity of demand for tires. If the demand for imported tires is highly elastic, meaning consumers are very sensitive to price changes, the tariff may significantly reduce imports. However, if the demand is inelastic, meaning consumers are less sensitive to price changes, the impact may be less pronounced.
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please help with this question :0
Answers
Answer:
darling, soes it have a read?
Explanation:
the full disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period.
Answers
The full disclosure accounting concept is applied when a company always prepares financial statements at the end of each monthly fiscal period. ----False
Full Disclosure Concept :
The principle of full disclosure is a concept that requires companies to disclose all necessary and other relevant information about their financial statements to everyone accustomed to reading this information. The principle of full disclosure means that companies report all necessary information in their financial statements so that users who can read the financial information can better make important decisions related to the financial statements. refers to the concept of proposing
Why is full disclosure important?Disclosure is important because it provides details about the case the defendant must answer and defend. There are several types of "disclosure", including so-called "first party disclosure," "third party disclosure," and defense disclosure.
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