Repayment Schedule End of Month Monthly Payment Interest Portion Principal Outstanding Principal Balance January $266.55 $30.00 $236.55 $2,763.45 February 266.55 27.63 238.92 2,524.53 March 266.55 25.25 241.30 2,283.23 April 266.55 22.83 243.72 2,039.51 May 266.55 20.40 246.15 1,793.36 June 266.55 17.93 248.62 1,544.74 July 266.55 15.45 251.10 1,293.64 August 266.55 12.94 253.61 1,040.03 September 266.55 10.40 256.15 783.88 October 266.55 7.84 258.71 525.17 November 266.55 5.25 261.30 263.87 December 266.51 2.64 263.87 0.00 Total $3,198.56 $198.56 $3,000.00 Effective interest rate: Monthly rate = 1% Annual percentage rate (APR) - 12% Monthly payment = $3,000/ 1.01) Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year b. A $5,000 loan for two years, 10 percent add-on interest, paid in 24 equal monthly installments c. A $5,000 loan to be repaid at the end of two years, 10 percent discount rate

Repayment Schedule End of Month Monthly Payment Interest Portion Principal Outstanding Principal Balance January $266.55 $30.00 $236.55 $2,763.45 February 266.55 27.63 238.92 2,524.53 March 266.55 25.25 241.30 2,283.23 April 266.55 22.83 243.72 2,039.51 May 266.55 20.40 246.15 1,793.36 June 266.55 17.93 248.62 1,544.74 July 266.55 15.45 251.10 1,293.64 August 266.55 12.94 253.61 1,040.03 September 266.55 10.40 256.15 783.88 October 266.55 7.84 258.71 525.17 November 266.55 5.25 261.30 263.87 December 266.51 2.64 263.87 0.00 Total $3,198.56 $198.56 $3,000.00 Effective interest rate: Monthly rate = 1% Annual percentage rate (APR) - 12% Monthly payment = $3,000/ 1.01) Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year b. A $5,000 loan for two years, 10 percent add-on interest, paid in 24 equal monthly installments c. A $5,000 loan to be repaid at the end of two years, 10 percent discount rate

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 8-74APayroll Accounting Jet Enterprises has the following data available for its April 30, 2019, payroll: Wages earned $485,000 * Federal income taxes withheld 92,300 * All subject to Social Security and Medicare matching and withholding of 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.70% and state unemployment taxes of 0.90% are payable on $405,700 of the wages earned. Required: If required, round your answers to the nearest cent. 1. Compute the amounts of taxes payable and the amount of wages that will be paid to employees. Enter amounts as positive numbers. Social Security $fill in the blank a1cdad04ff8d01d_1 Medicare $fill in the blank a1cdad04ff8d01d_2 Federal unemployment $fill in the blank a1cdad04ff8d01d_3 State unemployment $fill in the blank a1cdad04ff8d01d_4 Net pay $fill in the blank a1cdad04ff8d01d_5 Prepare the journal entries to record the wages earned and the payroll taxes. If an amount box does not…
Question 6 Flyzopen Limited had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $150,000 15,000 10,000 7,000 10,000 $192.000 Uncollectible 1% 2% 6% 12% 30% Required: (a) Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $900 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. 2
The credit term 3/10 net 30 signifies: a. Credit period 30 days, cash discount 3 percent and cash discount period 10 days b. Credit period 30 days, cash discount 10 percent and cash discount period 5 days c. Credit period 60 days, cash discount 5 percent and cash discount period 10 days d. Credit period 5 days, cash discount 10 percent and cash discount period 60 days
2
Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,995 cash in full payment of Arlene's account. Apr. 3. Wrote off the $11,430 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $20,500 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,250 cash in full payment. Dec. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $8,600 ; Fogle Co., $2,555 ; Lake Furniture, $ 6,565 ; Melinda Shryer, $1,855. 31. Dec. Based on an analysis of the $1,012,000 of accounts receivable, it was estimated that $44,000 wil be uncollectible.…
Exercise 8-04 Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) $159,000 Allowance for doubtful accounts (beginning balance) 11,470 Net credit sales 944,000 Collections 906,000 Write-offs of accounts receivable 5,400 Collections of accounts previously written off 2,000 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record sales on account) (To record collection of accounts receivable) SHOW LIST OF ACCOUNTS LINK TO TEXT…
Question 13 On November 1, Fastly Co. sold goods and accepted a note of $72,000, six-month, with annual interest rate of 10% (real from the customer. The December 31 adjusting entry should be: Debit Interest Receivable 3,600; Credit Interest Revenue 3,600 Debit Interest Receivable 1,200; Credit Interest Revenue 1,200 O Debit Discount on Notes Receivable 1,200; Credit Interest Revenue 1,200 Debit Interest Revenue 3,600; Credit Interest Receivable 3,600
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $33,000 $17,000 Percent uncollectible 8% 15% 30% Total per category ? Total uncollectible ? To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. 0-60 days 61-120 days Over 120 days past due past due past due Accounts receivable Amount $84,000 $11,000 $7,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? Complete the following. A. Complete each table by filling in the blanks. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $33,000 $17,000 Percent uncollectible 8% 15% 30% Total per category Total uncollectible
Proceeds journal entry
1 Book Hint Print rences Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10 %, $240,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Note: Use 360 days a year. Do not round intermediate calculations. View transaction list 1 No 1 2 Transaction (a) (b) Req 4 View journal entry worksheet Cash Notes payable Interest expense General Journal Debit 240,000 4,000 Credit Check my work 240,000 Jenil
Example 6-5 The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40 Example 6-7 The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%): Debit Credit Payroll Taxes 2,785.81 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FUTA Taxes Payable 148.58 SUTA Taxes Payable 742.88 Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $132,900 FICA tax—HI 1.45% on total pay Federal income tax $232.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment…
%24 %24 Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful ACcounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.

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