Reference no: EM133045540
Question - Diego Company sells a wide range of goods through two retail stores operating in adjoining cities. Most purchases of goods for resale are on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions were selected from those occurring during 2021:
-On January 10, 2021, purchased merchandise on credit, $36,300; the company uses a perpetual inventory system.
-On March 1, 2021, borrowed $215,000 cash from the bank and signed an interest-bearing note payable at the end of one year, with an annual interest rate of 5 percent payable at maturity.
-On April 5, 2021, sold merchandise on credit, $68,300; this amount included GST of $3,100 and PST of $4,900. The cost of sales represents 80 percent of the sales invoice.
Required -
1. Indicate the accounts affected and the amounts of the financial statement effects of these transactions.
2. What amount of cash is paid on the maturity date of the note?
|
Determining the compensation to be paid
: Determining the compensation to be paid to the new employee (Marketing Specialist)
|
|
Why is the fasab named an advisory board
: Why is the FASAB named an advisory board? What is the relationship between the FASAB and the GAO, the Treasury Department, and the OMB
|
|
What the breakeven point in units
: EZ Carry sells a constant mix of 4 small bags for each medium-sized bag and 5 medium bags for each large-sized bag. What the breakeven point in units
|
|
How much is your lottery prize worth today
: You will receive $2 million a year for the next 17 years plus an additional payment of $10 million at the end of 17 years. How much is your lottery prize
|
|
What amount of cash is paid on the maturity date of the note
: On January 10, 2021, purchased merchandise on credit, $36,300; What amount of cash is paid on the maturity date of the note
|
|
Violation of ethics
: Describe an incident in your experience that you think was a violation of ethics?
|
|
What is the bonds yield to maturity
: Last year, Clark Company issued a 10-year, 10% semi-annual coupon bond at its par value of Php1,000. What is the bonds yield to maturity
|
|
Compute the company marginal cost of capital
: Compute the company's marginal cost of capital if it raised the additional Sh.15million as envisaged. (Assume a tax rate of 30%)
|
|
Apply the npv criterion and state which investment is chosen
: Whichever project that will be chosen, a 15% return is required on both investment. Apply the NPV criterion and state which investment is chosen
|