Kate's Kitchen operates a production facility in Pubnico, Nova Scotia. When they first started the company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kate's Kitchen operates a production facility in Pubnico, Nova Scotia. When they first started the company in 2005 they used credit cards for some of the startup costs. In total they charged $42,000 to the cards and did not make a single payment for 2 years. The interest rate on the cards was 24% APR compounded monthly. How much did they owe at the end of the 2 years? (4 points) Kate's Kitchen operates a production facility in Pubnico, Nova Scotia. When they first started the company in 2005 they used credit cards for some of the startup costs. In total they charged $42,000 to the cards and did not make a single payment for 2 years. The interest rate on the cards was 24% APR compounded monthly. How much did they owe at the end of the 2 years? (4 points)
Expert Answer:
Answer rating: 100% (QA)
To calculate the total amount owed at the end of 2 years we need to consider the acc... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Company Case: Square: In Relentless Pursuit of a More Elegant Payment Experience It happened one day at an art fair. Jim McKelvey, an artisan who worked in handblown glass, had an admirer of his work...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Carey Company is borrowing $200,000 for one year at 12 percent from Second Intrastate Bank. The bank requires a 20 percent compensating balance. What is the effective rate of interest? What would the...
-
A stationary platform which can rotate freely about a vertical axis (Fig. 1.72) supports a motor M and a balance weight N. The moment of inertia of the platform with the motor and the balance weight...
-
Absorption from a pulsating bubble, use the results of Example 20.1-4 to calculate (t) and N A0 (t) for a bubble whose radius undergoes a square-wave pulsation: Here w is a characteristic frequency,...
-
Explain why a sell-side analyst might be less objective than a buy-side analyst in his/her research reports. If an analyst is working for Merrill Lynch, where should the analysts loyalties liewith...
-
The balance sheets of Tully Corp. showed the following at December 31, 2011, and 2010: Required: a. If there have not been any purchases, sales, or other transactions affecting this machine account...
-
K Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) Total sales Cost of sales Gross profit Selling, general, and administrative expenses Research and development...
-
Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the...
-
Content Available Mon Midnight before Week 4 starts Short Policy Description : Initial response(175-250 words no more than 300) due on Thursday. Accepted until Sunday with no late deduction. One...
-
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,700 on December 31, 2022. The proceeds of the note were $115,200. c. 1. Use the horizontal model to show the effects...
-
On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,540,000 in cash a other consideration. At the acquisition date, Smashing...
-
An astronaut of mass 80 kg holds an empty oxygen tank of mass 10 kg. He and the oxygen tank are stationary to start. By pushing the tank to the left with a speed of 2 m/s, the astronaut recoils in...
-
How do I make exceptions to the code? I. IMPORTANT FACTS: CS112: Programming (2) - Group Project Second Semester 2020-2021 Deadline: Tuesday 13 April 2021 at 11:00 pm. Mark Returned: within one...
-
Stanley Department Stores reported net income of $788,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 Incentive stock options (vested in...
-
what is the monthly payment for a car purchased at $24,500 when terms are 4 years loan , 3.99% interest rate? No money down payment. 2.) given the following information calculate the expected return...
-
Montana Company was started on January 1, 2013, when it acquired $50,000 cash from the owners. During 2013, the company earned cash revenues of $25,000 and incurred cash expenses of $16,200. The...
-
The following information pertains to the inventory of Anniola Company: During 2013, Anniola sold 4,000 units of inventory at $40 per unit and incurred $38,000 of operating expenses. Anniola...
-
At the beginning of 2013, Foster Corp.'s accounting records had the following general ledger accounts and balances. 1. Purchased land for $20,000 cash. 2. Acquired $10,000 cash from the issue of...
-
Classify each of the following costs relative to the cost object customer for a new car dealer: Salesperson wages Dealership manager salary. Depreciation on showroom furniture. Cost of automobiles...
-
Complete the following T-accounts: Materials Inventory ? 20,000 19,900 300 Wages Payable 15,000 Work-in-Process Inventory Finished Goods Inventory 2,000 ? 5,000 ? ? ? ? ? 3,000 32,000 5,000...
-
Benton Engineering Services Company incurred the following during 2019: Calculate prime cost and conversion cost for Benton Engineering Services Company during 2019. Direct labor.. Overhead Selling...
Study smarter with the SolutionInn App