On December 31, 2016, Thompson Hardware Company purchases $300,000 of property by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance
The amortization schedule shows that the company will pay $46,072 per year. Journalize the first yearly payment on December 31, 2017.
What will be an ideal response
Mortgage Payable 13,572
Interest Expense 32,500
Cash 46,072
Interest Expense = Principal x Interest
Interest Expense = $250,000 x .13
Interest Expense = $32,500
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Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?
a. Financial Accounting Standards Board (FASB) b. Securities and Exchange Commission (SEC) c. Public Company Accounting Oversight Board (PCAOB) d. International Accounting Standards Board (IASB)
What effect does the recording of revenue normally have on total assets?
What will be an ideal response?
In the ISO Commercial Crime Coverage form, robbery is defined as the
A) unlawful taking of property to the deprivation of the insured. B) unlawful taking of property from the care and custody of a person by someone who has caused or threatens to cause bodily harm or who has committed an unlawful act witnessed by that person. C) unlawful taking of money or securities through the alteration of a negotiable instrument. D) unlawful taking of property from inside the premises by someone who unlawfully enters or leaves the premises as evidenced by marks of forcible entry or exit.
Which of the following is FALSE about the functionalities of the supply planning team?
a. evaluation of both past and future capacity utilization b. development of a procurement plan c. identification of capacity constraints and alternatives to overcome them d. resolution of imbalances between expected demand and available capacity in a reactive way