4. On march 1, 2016, mandau services issued a 7% long term notes payable for $21

Question

4. On march 1, 2016, mandau services issued a 7% long term notes payable for $21000. it is payable over a 3 year term in $7000 principle installements on March 1 of each year, beginning March 1, 2017. each yearly installment will include both principle repayment of $7000 and interest payment for the preceding one year period. what is the amount of total cash payment that mandau wil make on march 1 2017.

3. A company purchased 400 units for $20 each on January 31. It purchased 520 units for $26 each on Februrary 28. it sold a total of 560 units for $40 each from March 1 through December 31. What is the amount of ending inventory on December 31 if the company uses the first in first out inventory costing method?

2. The allowance for bad debts accounts has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company's management estimates that 2% of net credit sales will be collectible for the year 2017. Net credit sales for the year amounted to $270000. What will be the balance of Allowance for bad debts on the December 31, 2017 balance sheet?

1. the cost of an assest is $1,200,000, and its residual value is $100,000. Estimated useful life of the asset is five years. Caluclate depreciation for the second year using the double declining balance method of depreciation.

Explanation / Answer

On march 1, 2016, mandau services issued a 7% long term notes payable for $21000. it is payable over a 3 year term in $7000 principle installements on March 1 of each year, beginning March 1, 2017. each yearly installment will include both principle repayment of $7000 and interest payment for the preceding one year period. what is the amount of total cash payment that mandau wil make on march 1 2017.

Answer is 8470

A company purchased 400 units for $20 each on January 31. It purchased 520 units for $26 each on Februrary 28. it sold a total of 560 units for $40 each from March 1 through December 31. What is the amount of ending inventory on December 31 if the company uses the first in first out inventory costing method?

Closing stock =No of unit purchased -sales

Closing stock =920-560= 360 units

Value of closing stock under fifo =360*26=9360

The allowance for bad debts accounts has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company's management estimates that 2% of net credit sales will be collectible for the year 2017. Net credit sales for the year amounted to $270000. What will be the balance of Allowance for bad debts on the December 31, 2017 balance sheet?

Bad debt expense 270000*.02 =5400

Closing bad debt allowance =2000+5400 =7400

the cost of an assest is $1,200,000, and its residual value is $100,000. Estimated useful life of the asset is five years. Caluclate depreciation for the second year using the double declining balance method of depreciation.

Answer is 28800

Precentage of depreciation 1/5 *2 =40%

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