Answer:
True
Explanation:
Imagine you're selling lemonade. It costs you $2 for a lemon, and you can make 5 glasses from it.
You sell each glass for $1.
At the end of the day, your profit per lemon = the total value of lemonade sold - the total cost of lemons. If you only sell 1 lemon worth of lemonade, it will be $5-$2 = $3 profit.
Net cash flow means the same as "profit".
Answer:
Sunland Inc.
Adjusting Journal Entries:
Account Titles and Explanation Debit Credit
Interest Expense $1,152
Interest Payable $1,152
To record accrued interest for 8 months.
Rent Revenue $2,600
Deferred Revenue $2,600
To record deferred rent revenue for 2 months.
Supplies Expense $1,570
Supplies $1,570
To record supplies expense for the period.
Explanation:
a) Data and Calculations:
1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)
2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)
3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)
b) The above adjusting journal entries are made in order to reverse the earlier entries made. The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.
Answer:
bonds payable 1,000,000 debit
loss on redemption 20,000 debit
discount on bonds 10,000 credit
cash 1,010,000 credit
--to record tyhe call of the bonds on September 30th--
Explanation:
par value of the bonds: 1,000,000
call premium: <u> 10,000</u>
total cash disbusements: 1,010,000
carrying value 990,000
loss on redemption 20,000
<u>Notice: </u>It is a loss as we are paying more than the aliability is worth
discount/premium:
face value 1,000,000
carrying value 990,000
discount 10,000
We write off the bonds account: bond payable and bon discount
we debit the loss and credit hthe cash disbursments
Well, outstanding debt is debt you owe to a creditor or multiple creditors. Outstanding debt can be on a credit card, loan or student loan. ... If the amount you owe is close to your credit limit that is likely to have a negative effect on your score.
Answer: A. Had major expenses in the first year.
Explanation: It just makes sense and it’s also correct
