3. On January 1, 2021, AXEL Inc receives $200,000 from a bank loan. The loan...
50.1K
Verified Solution
Link Copied!
Question
Accounting
3. On January 1, 2021, AXEL Inc receives $200,000 from a bank loan. The loan is to be paid back in one lump-sum payment at the end of 2025. The interest rate on the loan is 8% and interest payments are made semi-annually. How will this loan be reflected on the 2021 Balance Sheet?
b. On December 1, 2020, a retailer signed a contract with a manufacturer to deliver 100 items of inventory on January 5, 2021. The contract price was $40,000 ($400 per unit) and the retailer made the full payment on December 15, 2020. The manufacturer produced the goods and had them sitting in finished goods on December 29, 2020. This sale did NOT meet the requirements for a bill-and-hold. The manufacturer has a December 31 year-end.
How much deferred revenue related to this transaction will be included in the manufacturers 2020 balance sheet?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
