What is the effective interest rate on the note

Assignment Help Accounting Basics
Reference no: EM13994158

a) On June 30, 2011, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a non interest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2012. The 8% rate is appropriate in this situation.

Required:

1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2011 interest accrual, and the March 31, 2012 collection.

2. What is the effective interest rate on the note? 

Reference no: EM13994158

Questions Cloud

Give an example of the influence of health care policy : Give an example of the influence of health care policy on health care practices Consider for example the role of immunizations in childhood, your participation in preventative screenings, and other health care practices that are influenced by health ..
What is your definition of supply chain management : What is your definition of supply chain management and list and describe the components of supply chain management.
Calculate the magnitude and direction of the induced current : A coil with 160 turns, a radius of 5.0 cm, and a resistance of 12Ω. Calculate the magnitude and direction of the induced current in the 160-turn coil.
What is the effective interest rate on the note : Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2011 interest accrual, and the March 31, 2012 collection.
Historical demand for a product is demand : Historical demand for a product is DEMAND January 16 February 14 March 18 April 16 May 19 June 18 a. Using a weighted moving average with weights of 0.50 (June), 0.20 (May), and 0.30 (April), find the July forecast. Using a simple three-month moving ..
The role of the injured athlete : For you initial post:  choose a foot/ ankle or lower leg injury.  You are to describe it as if you were the injured athlete.  If can upload a picture or copy and paste a picture in the forum, that would be helpful, (but not mandated)  Provide informa..
Develop an elevator speech for your client : Write a tagline for your charity, not what they have but what they should have. It should be six words or less. Then, develop an elevator speech for your client that is about 21-words in length. This is the length of a seven-second sound-bite that a ..
What is the magnitude initial of the magnetic flux : What is the magnitude initial of the magnetic flux through the coil before it is rotated? What is the magnitude final of the magnetic flux through the coil after it is rotated?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Falcon industries regarding the location

The commissioners for Walker County are actively negotiating with Falcon Industries regarding the location of a new manufacturing plant in the area. As Falcon is considering several other sites, a "generous tax holiday" may be needed to influence ..

  A basic usage of the two different qualities named a and b

a basic usage of the two different qualities named a and b which are to be used weekly as their normal usage is

  Selling and administrative expenses

Income from continuing operations before income tax $470,000 Selling and administrative expenses 320,000 Income from continuing operations 329,000 Gross profit 900,000 Income before extraordinary item

  Market price of the common stock averaged

On December 31, 2012, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding.

  Norton company reports the following operating results for

norton company reports the following operating results for the month of august sales 310000 units 5000 variable costs

  How organization makes use of the control systems

Choose an organization with which you are familiar, either as a customer or as an employee, and outline how that organization makes use of the control systems which you have chosen to discuss/analyse.

  Calculate the net before-tax profit using cash basis

You are also aware that thefollowing has occurred during the 19X4 operational year. Calculate the net before-tax profit for 19X4using cash basis

  Explain the accounting practices california sutter health

Complete summary of the case study that identifies the key problems and issues, provides background  information, relevant facts, the solution employed, and the results achieved. Identify and explain the accounting practices California Sutter Healt..

  The door company manufactures doors classify each of the

the door company manufactures doors. classify each of the following quality costs as prevention costs appraisal costs

  Trumpet company produced 8600 units of product that

trumpet company produced 8600 units of product that required 3.25 standard hours per unit. the standard variable

  P company purchased 25 of s companys common stock on

the following balances were taken from the records of s companycommon stock 1111 and 123111 720000retained earnings

  Cost relationships-normal costing system

Cost Relationships; Normal Costing System - cherry Hill Glass Company employs a normal costing system.

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!

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