On 29 February 2020, the end of the financial year, the Loan account had a balance of R90 000 and the interest on loan account reflected atotal of R10 800. The interest rate is 12% p.a. and interest is not capitalised.Note: A repayment of R10 000 is made on 01 September of each year. The repayment on 01 September 2019 has been recorded.In view of the above, which one of the following statements is true?O A The non-current liabilities will reflect an amount of R90 000.O B. The interest expense for the year is R11 400.OC The amount that would be reflected as accrued expenses for interest on loan is R1 200.O D. The current liabilities will increase by R10 000.

Noncurrent liabilities include: Long term loans Debentures Bonds payable Long-term lease…

Answered: On 29 February 2020, the end of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131. What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 $69872 O $0 O $76859
Marigold Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock MARIGOLD ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense Dr. $18,810 22,900 8,710 3,730 63,430 11,720 370 4,500 $134,170 Cr. $30,670 14,467 -0- 4,700 6,590 -0- 10,580 3,750 63,413 $134,170 Dr. Adjusted $18,810 26,011 2,795 2,949 63,430 12,961 781 511 4,700 5,915 4,500 $143,363 Cr. $35,370 14,467 141 4,700 5,142 1,241 10,580 3,750 67,972 $143,363
On 2019-03-23, xeniya deposits $814.22 in an account paying a simple interest rate 5.540%. Calculate the force of interest δ(t) on 2019-10-22. Use the daycount convention ACT/365.
1. kgogo Trading has the following account balances as at 30 June 2019. RM 200,000 6,000 Account Receivable Provision for doubtful debt On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
78.
Ross Ltd enters into a contractual arrangement with Hum Ltd on 1 July 2020 to repay $400,000 in 3 years’ time to Hum Ltd. Ross Ltd currently has a AA credit rating and can borrow at 8%. On 30 June 2021, Ross Ltd.’s credit rating improves to AAA and its borrowing rate is now 6%. What is the impact of the re-measurement of the financial instrument for Ross Ltd. on 30 June 2021 given the change in credit rating? Group of answer choices There is a loss on re-measurement of $13,063 on the financial asset. There is a loss on re-measurement of $13,063 on the financial liability. There is a gain on re-measurement of $13,063 on the financial asset. There is a gain on re-measurement of $13,063 on the financial liability.
On 30 June 2018, Bamberga Ltd borrowed $600,000 as an interest-only loan at 8% for 5 years. In relation to this loan, state, to the nearest whole dollar, the amount that would be reported in the Statement of financial position on 30 June 2022 as a current liability.

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