At December 31, 2020, Burr Corporation owes $500,000 on a note payable due February 15, 2021.(a) If Burr had restructured the note on December 15, 2020, such that Burr has the contractual right to defer payment of $250,000 of the note until February 15, 2022, how much of the $500,000 should be reported as a current liability at December 31, 2020

Answers

Answer 1

Answer:

$250,000

Explanation:

First and foremost, initially the whole amount payable( $500,000) was to be paid in one month and 15 days counting from December 31, 2020, hence, since the amount is payable within a  year, it should have been classified as the current liability.

However, the refinancing meant that  $250,000 would be deferred to 2022 while the balance of $250,000 ($500,000-$250,000) is still payable on the agreed date (February 15, 2021).

As a result, $250,000  would be reported as a current liability while the balance  of $250,000 is shown as non-current(long-term) liability.

Answer 2

Of the $500,000 Note Payable, $250,000 should be reported as a current liability by Burr Corporation, while the remaining $250,000 should be reported as a long-term liability.

Data and Calculations:

Note Payable on December 31, 2020 =$500,000

Maturity date = February 15, 2021

Restructuring date = December 15, 2020

New Maturity date after restructuring = February 15, 2022

Current liability at December 31, 2020 = $250,000 ($500,000 - $250,000)

Long-term liability = $250,000 ($500,000 - $250,000)

Thus, in the balance sheet as of December 31, 2020, Burr Corporation can report $250,000 as a current liability instead of $500,000. The remaining $250,000 is reported as a long-term liability.

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Related Questions

When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society's long-run interests, it is most likely practicing ________ marketing.A. valueB. societalC. sense-of-missionD. consumer-orientedE. customer value

Answers

Answer:

Option B: Societal

Explanation:

Societal Marketing was coined from the marketing concept. Marketers and consumers are collecting stocks of what is good for themselves, their family, their country, and the planet.

It involves means by which marketing looks for ways amd means to provide products and services to help consumers reach their goals and Target while also making profitable decisions for their companies.

It is useful to consumers' long-run best interest and help promoting good corporate citizenship.

Compare the flow (in the most recent year) and stock of FDI from your country in China versus the flow and stock of FDI from China in your country. Which is bigger?

Answers

Answer:

Foreign Direct Investment refers to investments that citizens or businesses of a country make in another country by either investing or acquiring businesses in the other country.

In 2019, FDI from China to the USA was estimated to be $37.7 billion.

In the same year, FDI from the USA to China was estimated to be $116.2 billion.

FDI from the US to China is therefore bigger than FDI from China to the US.

6. Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff

Answers

Answer: Moving down along the PPF will produce more goods but less quality

Explanation:

On the production possibilities frontier, every choice along involves a trade-off, moving down along the PPF, production of capital goods is more but this will result in less quality for to consumers goods, when analysed with the opportunity cost, it is realized that the value of customer good o gone

have to produce less quantity of consumer goods. The opportunity cost of a capital good is the value of consumer good forgone.

How you will gather and formulate your data

Answers

Answer:

1.Identify issues and/or opportunities for collecting data. ...2.Select issue(s) and/or opportunity(ies) and set goals.3.Plan an approach and methods. ...4.Collect data. ...5.Analyze and interpret data. ...6.Act on results.

The _____________ define(s) what the system does.
A. mission of the system
B. RA
C. operational characteristics
D. previous findings

2- What may occur if you do NOT include the scope of the RA when defining it?
A. Attacks
B. exploited threats
C. Losses
D. missed deadlines

3- __________ define(s) how the system operates in your environment.
A. The mission of the system
B. Operational characteristics
C. RAs
D. Previous findings

Answers

1.A.The mission of the System
2.C.Losses
3.B.Operational Characteristics

Discuss how structural dimensions of the firm, including formalization, standardization, and centralization, can affect the firm’s propensity to innovate and its effectiveness at innovation

Answers

Explanation:

A company's organizational structure can be defined as the organization of the company's activities so that it operates more efficiently and effectively and achieves its objectives and goals.

Therefore, the structural dimensions of a company including formalization, standardization and centralization will directly influence the innovation of an organization in relation to several variables such as its internal environment, processes, products and services, as there are organizational structures that are more focused on innovation than others, such as the horizontal structure in relation to the vertical, since the vertical structure is the most rigid and with a higher hierarchy, while in the horizontal structure there is greater autonomy of employees and greater participation in the decision-making process, which is a more flexible environment open to innovation.

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Price Standard Quantity (Rate) Unit CostDirect materials (plastic) 9 sq ft. $ 1.30 per sq. ft. $ 11.70 Direct labor 0.3 hr. $ 13.50 per hr. 4.05 Variable manufacturing overhead(based on direct labor hours) 0.3 hr. $ 1.30 per hr. 0.39 Fixed manufacturing overhead($619,080 ÷ 938,000 units) 0.66 Parker Plastic had the following actual results for the past year:Number of units produced and sold 1,000,000Number of square feet of plastic used 12,800,000Cost of plastic purchased and used $ 15,360,000Number of labor hours worked 336,000Direct labor cost $ 4,200,000Variable overhead cost $ 1,700,000Fixed overhead cost $ 393,000Required:Calculate Parker Plastic’s variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.)Variable Overhead Rate Variance $Variable Overhead Efficiency Variance $Variable Overhead Spending Variance $

Answers

Answer:

Following are the solution to this question:

Explanation:

Overhead variable rate

[tex]=1700000-(336000 \times 1.30)= 1263200[/tex]

Performance Variance variable overhead

[tex]=1.3\times (336000-1000000 \times 0.3) = 46800[/tex]

Overhead variable spending[tex]=1700000-(1000000\times 0.39) =1310000[/tex]

Outstanding debt of Home Depot trades with a yield to maturity of 5%. The tax rate of Home Depot is 40%. What is the effective cost of debt of Home Depot

Answers

Answer:

3.00%

Explanation:

The effective cost of debt of Home Depot = 5%*(1 - 0.40)

The effective cost of debt of Home Depot = 0.05*0.60

The effective cost of debt of Home Depot = 0.03

The effective cost of debt of Home Depot = 3.00%

In the __________________ manufacturing environment, order acceptance occurs before the production lead time. Fill in the blanks.

Answers

Answer:

Make to order (MTO)

Explanation:

A Make to order (MTO) can be defined as a manufacturing technique which typically involves the production of goods only when an order has been placed by a customer. Thus, no product would be manufactured under this production technique or approach until a confirm order is received.

In the Make to order (MTO) manufacturing environment, order acceptance occurs before the production lead time.

With a planned volume of 15,000 units, the master budget includes variable costs of $450,000 and fixed costs of $350,000. If the actual volume is 12,000 units, the total costs under flexible budget should be:__________a. $490,000.b. $560,000.c. $650,000.d. $710,000.

Answers

Answer:

Total cost= $710,000

Explanation:

Giving the following information:

15,00 units:

Fixed costs= $350,000

Total variable cost= $450,000

First, we need to calculate the unitary variable cost:

Unitary variable cost= 450,000 / 15,000

Unitary variable cost= $30

Now, the total cost for 12,000 units:

Total cost= 350,000 + 30*12,000

Total cost= $710,000

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will:____________
a) increase
b) decline
c) not be affected
d) none of the above

Answers

Answer:

b) decline

Explanation:

If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will decline. This happens because people lost trust and hastily withdrawn their money deposited with the bank.

Explain why the consideration of opportunity costs may be very relevant to a firm. How can opportunity costs affect a business decision?

Answers

Answer:

Importance : Opportunity cost is lost Contribution

Effect : Opportunity cost increases the variable costs of the decision that has been chosen

Explanation:

Opportunity Cost is a lost contribution. Contribution is calculated as Sales less Variable Costs.

Considering opportunity costs is very relevant to a firm because it constitutes part of the money lost that cold have been earned when another alternative course of action is chosen over another. The opportunity cost would have been the revenue for the disregarded option.

So opportunity cost increases the variable costs of the decision that has been chosen.

Novak Corporation amended its pension plan on January 1, 2020, and granted $152,280 of prior service costs to its employees. The employees are expected to provide 1,880 service years in the future, with 330 service years in 2020. Compute prior service cost amortization for 2020. Prior service cost amortization for 2020

Answers

Answer:

26762.74

Explanation:

Prior service cost amortization for 2020 can be calculated by first calculating the average time until the employee's retirement. After calculating the average time until retirement we will divide the service cost at that time

Workings

average time until retirment  = 1880/330

average time until retirment = 5.69 years

prior service cost amortization for 2020 = $152,280/5.69

prior service cost amortization for 2020 = $26762.74

When operating in a constrained environment, which products should be produced? a. products with the highest contribution margin per unit b. products with the highest contribution margin per unit of the constrained process c. products with the highest selling price d. products with the lowest allocated joint cost

Answers

Answer: B. products with the highest contribution margin per unit of the constrained process.

Explanation:

When operating in a constrained environment, the products that should be produced are the products with the highest contribution margin per unit of the constrained process.

This is essential for the company to maximize its total contribution margin. This in turn will help the company in realizing revenue and also maximizing profit.

ABC company had 8,000 in accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?

Answers

Answer:

Net income is reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000

Explanation:

Since it is given that there is $8,000 in account receivable out of which $2,000 would be estimated and recorded as a bad debt

So here the bad debt expense is recorded that means the expenses are increased that ultimately reduced the net income also at the same time the amount of receivable would also decreased by $2,000

Therefore the same is to be considered

1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.21, and 1.50, respectively. What is the beta of the portfolio? a. 1.17.b. 1.12.c. 1.38.d. 1.00.e. 1.23.2. The risk-free rate is 3.7% and the market expected return is 11.6%. What is the expected return of a stock that has a beta of 1.22?

Answers

Answer:

1.

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

2.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

1.

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B  + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66  +  0.34 * 1.21  +  0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

2.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037  +  1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

A company purchased a new delivery van at a cost of $58,000 on July 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $4,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?a. $13,350.
b. $6,260.
c. $6,675.
d. $7,250.
e. $5,750.

Answers

Answer:

a. $13,350

Explanation:

Using straight-line method of depreciation the depreciable value of an assets is expensed over the useful life of the asset equally each year.

Use following formula to calculate the depreciable value

Depreciable value = Cost of asset  - Salvage value

Placing values in the formula

Depreciable value = $58,000 - $4,600

Depreciable value = $53,400

Now use following formula to calculate the depreciation value of each year

Depreciation expense = Depreciable value of the asset / Useful life of the asset

Placing values in the formula

Depreciation expense = $53,400 / 4 years

Depreciation expense = $13,350

Amazon Corporation has preferred stock outstanding that pays a $12.80 annual dividend. It price is $158. What is the required rate of return (yield) on the preferred stock?

Answers

Answer:

8.10%

Explanation:

The required rate of return (yield) on the preferred stock = Dividend / Price

= $12.80 / $158  = 0.0810126582278481 = 8.10%

If the European subsidiary of a U.S. firm has net exposed assets of 750,000 Euros, and the euro drops in value from $1.30/euro to $1.20/ Euro the U.S. firm has a translation:__________

a. gain of $75,000
b. loss of $75,000
c. gain of $65,000
d. loss of 546,923

Answers

The correct answer is:

b. loss of $75,000

Chuck Russo, a high school math teacher, wants to set up an IRA account into which he will deposit $2,000 per year. He plans to teach for 20 more years and then retire. If the interest on his account is 7% compounded annually, how much will be in his account when he retires?

Answers

Answer:

FV= $819,909.85

Explanation:

Giving the following information:

Anual deposit= $20,000

Number of periods= 20 years

Interest rate= 7%

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {20,000*[(1.07^20) - 1]} / 0.07

FV= $819,909.85

Question Help A company purchased mineral assets holding approximately 240,000 tons of ore for $960,000. The estimated residual value of the assets is zero. During the first​ year, 40,000 tons are extracted and sold. What is the amount of depletion for the first​ year?

Answers

Answer: $160,000

Explanation:

First calculate the Depletion rate per ton which is;

= ( Cost - residual value) / Capacity in tons

= (960,000 - 0) / 240,000

= $4 per ton

In first year, 40,000 tons were used. Amount of depletion is therefore;

= 40,000 * 4

= $160,000

The amount of depletion for the first year did by the company in purchasing the mineral assets were as below :

And will do Cost less the residual value and divide by capacity :

= 960000 - 0 / 240000

= $4 per ton.

In the first year the company acquired 40,000 extract .

= 40,000 x 4

= $160,000 amount of depletion happens in the first year .

For more information on depletion , please refer the below link :

https://brainly.com/question/11318086

According to Gardner, intelligence can be measure by a person having
a. the ability to create or find solutions to problems by gathering new knowledge
b. the ability to create a valued product or service
C. Skills that allow them to solve problems in life
d. all of the above

Answers

Answer: D. All of the above.

Explanation:

Answer:

its d

Explanation:

hope this helps

On October 1, Sam's Painting Service borrows $164000 from National Bank on a 3-month, $164000, 4% note. What entry must Sam's Painting Service make on December 31 before financial statements are prepared?A. Interest Expense 500 Interest Payable 500B. Interest Payable 500 Interest Expense 500C. Interest Expense 2,000 Interest Payable 2,000D. Interest Expense 500 Notes Payable 500

Answers

Answer:

{Debit] Interest expense $1,640

[Credit] Interest payable $1,640

Explanation:

Annual 12 month interest  = $164,000 * 4%  = $6,560

No of months from 1 Oct to 31 Dec = 3 months

Interest expense to be recorded as ‘payable’ for 3 months  = $6,560 * 3 months/12 months  = $6,560 * 0.25 = $1,640

Entry will include:

{Debit] Interest expense $1,640

[Credit] Interest payable $1,640

A stock has the following returns over three consecutive years: 85%, 58%, and 128%. What is the arithmetic average?

Answers

Answer:

The stock's arithmetic average is:

90.33%.

Explanation:

a) Data and Calculations:

Returns over three consecutive years:

Year 1 =   85%

Year 2 =  58%

Year 3 = 128%

Total returns = 271%

Average = Total returns divided by number of years

= 271/3

= 90.333

=90.33%

b) The arithmetic average is the total returns divided by the number of years involved.  This implies that we find the average or the mean by adding up some pieces of data together and dividing by the number of the pieces of data.

Loki, Inc. and​ Thor, Inc. have entered into a​ stock-swap merger agreement whereby Loki will pay a 39% premium over​ Thor's pre-merger price. If​ Thor's pre-merger price per share was $42 and​ Loki's was $51​, what exchange ratio will Loki need to​ offer?

Answers

Answer: 1.15

Explanation:

Premium = 39%

Thor's share price = $42

The compensation to shareholders will be:

= $42 + ($42 × 0.39)

= $42 + $16.38

= $58.38

Loki's share price = $51

We then calculate the exchange ratio which will be:

= $58.38 / $51

= 1.15

Loki will need to offer an exchange rate of 1.15.

Hiring one more worker for a station ___ design capacity and ___ utilization. (Hint: Relate to the problem set.)A. may increase or decrease, always increasesB. always increases, may increase or decreaseC. always increases, always increasesD. may increase or decrease, may increase or decrease

Answers

Answer:

B. always increases, may increase or decrease

Explanation:

Each worker being added is going to complete some job or assemble some units hence the design capacity after addition of worker will always be greater than the design capacity before addition. But utilization = actual output * 100 / theoretical design capacity.

Hence, if actual output after addition of worker increases more in proportion than that of proportional increase in number of worker, then the utilization of workstation will increase else it is likely to decrease. If both proportion are equal then the utilization is likely to remain same.

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the double-declining-balance method.A. $16,900.B. $16,000.C. $17,400.D. $18,379.E. $20,880.

Answers

Answer:

$13,920

Explanation:

Calculation to Determine the machines' second year depreciation under the double-declining-balance method

First step is to calculate the depreciation rate

Using this formula

Depreciation rate = 100% / Useful life *2

Let plug in the formula

Depreciation rate == (100%/5years) * 2

Depreciation rate =40%

Second Step

Year 1 =$87,000 *40% *2

Year 1= $69,600

Third step is to Determine the machines' second year depreciation under the double-declining-balance method

Year 2 Depreciation = ($87,000 - $69,600) *40% *2

Year 2 Depreciation= $13,920

Therefore the machines' second year depreciation under the double-declining-balance method will be $13,920

Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate? 7.75% 0.02% 4.50% 3.00%

Answers

Answer:

the growth rate is 3%

Explanation:

The computation of the PAMC growth rate is shown below:

Price of the stock = Current year dividend ÷ (required rate of return - growth rate)

$16.25 = $0.78 ÷ (0.078 - growth rate)

0.078 - growth rate = 0.048

So, the growth rate is 3%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

A production system in which there is little or no delay time and idle-in process and finished goods inventory is called a__________.

Answers

Answer:

Just in time inventory system

Explanation:

Just in time inventory system is on that ensures that the amount of a product needed is available to the consumer and no more is stockpiled.

For this inventory style to be successful the business will need to forecast accurately the demand of customers.

Just in time inventory system is aimed at increasing efficiency and reducing cost such as storage cost.

There is little or no delay time and idle-in process and finished goods inventory

Answer:

Just-In-Time Production System.

Explanation:

Just-In-Time Production System stands in direct contrast with Just-In-Case (JIC) production methodology where goods are manufactured and held in stock with the intention to prevent a situation where there is no inventory for that product. One of the key reasons why some companies may practice the traditional Just-In-Case system is to prevent the loss of key suppliers and or key buyers for that product. Other factors that lead owners of manufacturing concerns to practice JIC is may be due to the existing inefficiencies of the system such as poor quality control, bad roads, and other uncertainties in the system which can contribute to a break in supply.

In the absence of these factors, Just-In-Time (JIT) production system becomes very preferred. The JIT (also known as the Toyota Production System was designed to remove waste of various categories, thus leading to lower production costs.

According to the philosophy of Toyota, the various types of wastage which can occur are:

MovementStaff UnderutilizationExcessive InventoryProcessing Unwanted goodsTransporting unwanted goodsExcessive productionTime taken to execute the process andDefective production

It is interesting to note that the TPS was refined by Kiichiro Toyoda, based on an idea gotten from an American supermarket.

Cheers!

4. Which of the following is a liability?
a. Machinery
b. Creditors for goods
C. Motor Vehicles
d. Cash at Bank​

Answers

Answer:

Maybe C.

Explanation:

Answer:

Answer is B

Explanation:

Products bought using a loan creates lenders in the books of record. Various leasers are viewed as current liability.

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