Troop co. frequently borrows from the bank to maintain sufficient operating cash. the following loans were at a 12% interest rate, with interest payable at maturity. troop repaid each loan on its scheduled maturity date. date of maturity term loan amount date of loan 11/1/yr 3 $10,000 10/31/yr 4 1 year 2/1/yr 4 30,000 7/31/yr 4 6 months 5/1/yr 4 16,000 1/31/yr 5 9 months troop records interest expense when the loans are repaid. accordingly, interest expense of $3,000 was recorded in year 4. if no correction is made, by what amount would year 4 interest expense be understated?

Bayside began 2014 with an inventory t-account debit balance of $155,000. inventory purchases during the year amounted to $75,000. there were no inventory-related write-downs or losses. what is its december 31, 2014, inventory account balance?

Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer