User Account

All Pages

What is the correct interest revenue

Assignment Help Accounting Basics
Reference no: EM132879888

Question - A company financed the sale of equipment and recorded a note receivable for the sale. The accountant inappropriately recorded the sale at the coupon rate instead of market rate and fair value.

Cash received $80,000

Notes receivable 339,000

Sales price $419,000

Tax rate 30%

Estimated tax payment $23,000

Note information:

Term of the note 4 years

Coupon rate 1.5%

Market rate 7.7%

The note is due in equal annual payments of principle and interest.

Incorrect income statement, for the year ended December 31

Sales $739,000

Expenses 591,000

Interest revenue 5,085

Pretax income 153,085

Tax expense 45,926

Net income 107,159

Required - What is the correct interest revenue for 20X1?

Reference no: EM132879888

Questions Cloud

At what amount was Cost of Goods Sold reported : Purchased merchandise inventory for $9,600,000. At what amount was Cost of Goods Sold reported in the company's year- end income statement
What role hr professionals can play to influence a healthy : Analyze what role HR professionals can play to influence a healthy and balanced workplace culture for both union and nonunion employees.
Summarize volunteer handbook : sessions do not need to be scheduled however, if you volunteer regularly for a designated shift, please be punctual and reliable. If you are unable to fulfill y
Work project on time and under budget : Suppose that an employee completes a large work project on time and under budget. He has saved the company several million dollars
What is the correct interest revenue : A company financed the sale of equipment and recorded a note receivable for the sale. What is the correct interest revenue for 20X1
What is the most challenging aspect of working in a diverse : What Is the Most Challenging Aspect of Working in a Diverse Environment?
When you were growing up-did interact with diverse groups : What has the diversity mix been (how have diverse groups been represented) in organizations where you have worked? Where you have lived and now live?
How can socialization process benefit an organization : 1. How can socialization process benefit an organization? Describe the role of HRM in the orientation.
Prepare the year-end adjusting entry : Assuming Erving has a December 31 year end, prepare the 2021 year-end adjusting entry to account for accrued interest on the note payable

Reviews

Write a Review

Accounting Basics Questions & Answers

  What would be the net income

If sales dropped to 60.00% of the maximum capacity and the selling price reduced by $4.50 per unit, what would be the net income

  Comprehensive Tax Return Project

Question - Federal Taxation - Comprehensive Tax Return Project - What is the cash given to charity (when the total gifts is $4,000)

  What principle have you illustrated

The Koepka Co. and the Johnson Co. have both announced IPOs at $58 per share. What principle have you illustrated

  The opportunity cost

What is the present 0 year value if the opportunity cost (discount) rate is 10%?

  In this discussion you will consider how you would involve

involving the community in program developmentin this discussion you will consider how you would involve the community

  How do prepare the adjusting general journal entry

How do prepare the adjusting General Journal entry (without explanation) for the six-months ended December 31, 2019. If no entry is required.

  Compute gamma minimum quarterly estimated tax payments

For each of the following independent cases, compute Gamma's minimum quarterly estimated tax payments that will avoid an underpayment penalty

  Find which is the best description of authorized shares

Which is the best description of authorized shares? The total amount of shares a company has received cash for./ The total amount of shares that can be sold

  Journalize sales transactions

On December 3, Xu Company sold $500,000 of inventory with terms 2/10, n/30, The cost of the good sold was $350,000. Journalize sales transactions

  Find the effective interest rate for a loan for three years

Find the effective interest rate for a loan for three years compounded quarterly at an annual rate of 12?%. Use the accompanying future value table.

  What trends does the cash flow statement reveal

Go to Apple website. What should Apple do to improve its cash position and why? What trends does the cash flow statement reveal

  Americus camera shop uses the lower-of-cost-or-market basis

americus camera shop uses the lower-of-cost-or-market basis for its inventory. the following data are available at

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd