Reference no: EM131284703
Agrico, Inc., accepted a 10-month, 13% (annual rate), $4,050 note from one of its customers on May 15, 2016; interest is payable with the principal at maturity.
Required:
a-1. Prepare the horizontal model to record the interest earned by Agrico during its year ended December 31, 2016. (Use amounts with + for increases and amounts with – for decreases.)
a-2. Prepare the journal entry to record the interest earned by Agrico during its year ended December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
b-1. Prepare the horizontal model to record collection of the note and interest at maturity. (Use amounts with + for increases and amounts with – for decreases.)
b-2. Prepare the journal entry to record collection of the note and interest at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
Audit standards require investigation of prospective clients
: You are a CPA in a regional public accounting firm that has ten offices in three states. Mr. Shine has approached you with a request for an audit. He is the president of Hitech Software and Games Inc., a five-year-old company that has recently grown ..
|
Money and banking
: The corporate bond you own gives you $100 return every year, The price of this bond now is selling for $1250. We anticipate the price of this bond to go up to $1450 next year, Calculate the total return of return of this bond.
|
How much federal tax due you owe-average tax rate
: Your company generated $3.0 million in revenue for 2014 and incurred $2.35 million in expenses. How much Federal tax due you owe? What is your average tax rate? What is your marginal tax rate?
|
Accrual basis taxpayer-creditor is cash basis taxpayer
: Company N, an accrual basis taxpayer, owes $90,000 to Creditor K. At the end of 2016, Company N accrued $7,740 interest payable on this debt. It didn’t pay this liability until March 3, 2017. Both Company N and Creditor K are calendar year taxpayers...
|
Prepare the horizontal model to record collection of note
: Agrico, Inc., accepted a 10-month, 13% (annual rate), $4,050 note from one of its customers on May 15, 2016; interest is payable with the principal at maturity. Prepare the horizontal model to record the interest earned by Agrico during its year ende..
|
Schedules of disbursements
: Two alternative courses of action have the following schedules of disbursements. The first alternative spends $1,300 now and no more. The second does not spend anything now but one year later spends $100, the following year an additional $200 and $30..
|
What are the financial risks to healthcare organizations
: What are the financial risks to healthcare organizations? What role do the accountants play in risk management? Why is it important to hire accountants that understand the unique needs of a healthcare organization?
|
Pay operating costs of the facility without borrowing
: What is the purpose of the cash budget? How did you determine the minimum level of cash reserves needed to pay operating costs of the facility without borrowing?
|
What is cost basis of go-cart track for depreciation purpose
: You pay $700,000 for a house and the land that it is on. The land is valued at $270,000 and the house is valued at $430,000. You decide to demolish the house ($30,000 demolition cost) and build a go-cart track at a cost of $750,000. What is the cost ..
|