Reference no: EM133015585

Questions -

Q1. The company borrows $ 15,500 on Jan. 1, 2020. it is to be repaid in yearly installments of $3,500 each December 31 for the next five years. Show how the current portion of the non-current debt is allocated over the next five years.

Q2. On October 15, 2020, west holdings inc. ask to extend its past-due $8,000 account payable to technology inc. Technology agrees to accept $3,000 cash and a 60-day, 10%, $5,000 note to replace the account payable. Calculate the total interest expense/payable.

Q3. Assume partnership profit for the year is $70,000 and carol and Edwards's beginning of year capital expenses are $ 10,000 and $30,000 respectively. Calculate allocation for carol and Edwards if they agree to share profit and losses on a 2:1 ratio.

Q4. Carol and Edwards agree to share profit and losses on the basis of their beginning capital investments. Assume partnership profit for the year is $70,000, and carol and Edward's beginning of year capital balances are $10,000 and $30,000 respectively. Show their profit or loss allocation using the ratio of capital investment method.