11. Sodim be betowed $175,000 on Apr 1 . The e requres interest at 12% and princ

Question

11. Sodim be betowed $175,000 on Apr 1 . The e requres interest at 12% and principal so be puid in one year. How mch interest is recognized for the period from April to December 31? B) $21.000 $5250 D $15,750 se the folowing to answer questions 12-13 ie Co. is real sture operty in a state with a 6% retail sales tax. The retailer may kep the sales tax collected Stine Co records the sales tax in the Sales account. The amount corded in the Sales account during May was $148.400 12. The amount of sales taxes (to the nearest dollar) for May is A $8726 B) $8.400. D) $9,438 13. The anount of sales taxes payable (to the nearest dollar) to the state for the month of May is A) $8551 B) $8.232 C $8726 D) $9.249 14. Ermler Corporation has $1,800,000 of short-term debt it expects to retire with proceeds fom the sale of 60,000 shares of common stock. If the stock is sold for $20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities? A) $1.200,000 B) $1,800,000 C $600,000

Explanation / Answer

Answer

11.D $15750

Interest From April 1 to December 31 = $175000*12%*9/12

               =$15750

12. B.$8400

sales tax=Tax receipts / (1+tax rate)

=$148400/(1+6%)

=$148400/1.06

=$140000

sales tax for may =$148400-$140000 = $8400

13.B.$8,232.

$8,400 - 2% of $8400 = $8,232

14.B.$1800000

60000 shares*$20 = $1800000

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