On November 19, Nicholson Company receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)
A. Debit Interest Receivable $1,200; credit Interest Revenue $1,200.
B. Debit Interest Revenue $200; credit Interest Receivable $200.
C. Debit Notes Receivable $140; credit Interest Revenue $140.
D. Debit Interest Receivable $140; credit Interest Revenue $140.
E. Debit Notes Receivable $140; credit Interest Receivable $140.
Answer: D
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Yuma, Inc. manufactures teddy bears and dolls. Currently, Yuma makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor. Yuma uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $15,000 a month, allocated on the basis of direct labor hours. The cost associated with Processing is $10,000 a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35% of total batches. What is the total manufacturing cost for one teddy bear?
A. $4.50 B. $8.00 C. $7.00 D. $2.50
During 2017, Manuel and Gloria, who are not married and live in Beverly Hills, incurred acquisition debt on their new residence of $2,150,000. On their individual tax returns, what is the amount of qualified acquisition debt on which they can each deduct interest in 2018?
A. $900,000. B. $1,500,000. C. $1,000,000. D. $750,000.
You are importing TV sets worth ¥10 million from a Japanese manufacturer, and this amount is payable after 6 months. You can hedge your exchange risk by:
A. borrowing Japanese yen. B. doing nothing - it is impossible to hedge. C. buying Japanese yen in the forward market. D. selling Japanese yen in the forward market.
Sea the World Cruises, Inc., began operations in January by issuing 500,000 shares of $0.10 par value common stock for $10 per share. It also issued 1,000 shares of $150 par value, 6%, cumulative preferred stock for $150 each. The journal entry to record the issuance of the preferred stock includes a ______.
a. debit Cash $9,000 b. debit Preferred Stock $150,000 c. debit Preferred Stock $9,000 d. credit Cash $9,000 e. credit Preferred Stock $9,000 f. debit Cash $150,000 g. credit Cash $150,000 h. credit Preferred Stock $150,000