Answer:
A
Explanation:
In this question, we are to evaluate the validity of the options. We were told he used the acquisition method. When do we use the acquisition method?
The acquisition method is used when a company is taken in by another company by using a merger, acquisition or through a consolidation.
Now, out of all the options presented, we can see that the selling price less the acquisition value is recorded as a realized gain or loss.
Answer:
A) $24,602
Explanation:
We can solve this question by finding the periodic deposits needed by using the formula:
where:
FV= future value = $220,000
PMT = periodic deposits required = ???
i = effective interest rate per period = 0.0331
n= number of deposits = 8
However, since the interest is compounded monthly, let's also calculate the effective interest rate
Effective interest rate = 
where; r = 12.5% = 0.125
= 0.1324
Interest rate per period = 
= 0.0331
Then;
220,000 = PMT × 8.986
PMT = 
PMT = $ 24,482.5
Since A) $24,602 is closer to $ 24,482.5
Therefore, $ $24,602 must be deposited every three months
Answer:
a. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? Briefly discuss.
Brian: 5 hours for PowerPoint and 5 hours for the calculations, total 10 hours.
Debbie: 10 hours for PowerPoint and 6 hours for the calculations, total 16 hours.
In total they would spend 26 hours combined.
If they divide the work equally, they will spend too much time.
b. How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? Briefly discuss
Brian will spend 10 hours doing PowerPoint slides and Debbie will spend 12 hours doping calculations. Total time spent 22 hours. By specializing they will save 4 hours.
c. If Brian and Debbie have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides? Briefly discuss
Yes, Debbie could pay $50 to Brian so that he does everything in 20 hours. That way they can save 2 more hours.
Answer:
1. Determine the amount of the adjusting entry for uncollectible accounts. $850
Dr Bad debt expense 850
Cr Allowance for doubtful accounts 850
2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
- accounts receivable $430,000
- allowance for doubtful accounts $4,850
- bad debt expense $4,850
3. Determine the net realizable value of accounts receivable.
- $430,000 - $4,850 = $425,150
Explanation:
accounts receivable balance $430,000
allowance for doubtful accounts balance $4,000
total sales for the year $1,940,000
total bad debt expense = 0.25% x $1,940,000 = $4,850
adjusting entry = $4,850 - $4,000 = $850
