What is the purpose of a warranty?

Journalize the following transactions in the accounts of Simmons Company:

Alexxx [7]

Answer:

A) March 1, received note receivable from Bynum Company

Dr Note receivable 60,000

Cr Accounts receivable 60,000

B) March 16, received note receivable from Solo Company

Dr Note receivable 25,000

Cr Accounts receivable 25,000

C) April 30, Bynum Company's note is dishonored

Dr Accounts receivable 60,600

Cr Notes receivable 60,000

Cr Interest revenue 600 ($60,000 x 6% x 2/12)

D) May 17, Solo Company's note is dishonored

Dr Accounts receivable 25,375

Cr Notes receivable 25,000

Cr Interest revenue 375 ($25,000 x 9% x 2/12)

E) July 29, cash is collected from Byrum Company

Dr Cash 60,900

Cr Accounts receivable 60,600

Cr Interest revenue 300

F) July 29, Solo Company's debt is written off

Dr Allowance for doubtful accounts 25,375

Cr Accounts receivable 25,375

7 0

4 years ago

Define asset-backed security.

Jet001 [13]

Answer:

An asset-backed security is a security whose income payments and hence value are derived from and collateralized by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually.

Explanation:

5 0

3 years ago

Read 2 more answers

An investor is considering the purchase of a(n) 7.625 %, 18-year corporate bond that's being priced to yield 9.625 %. She th

sweet [91]

Answer:

The correct answer is 18.84%.

Explanation:

According to the scenario, computation of the given data are as follows:

Time period ( Nper) = 18 years

Rate = 9.625%

Let FV = $1,000

Coupon rate = 7.625%

Then, Coupon payment = $1,000 × 7.625% = $76.25

Attachment is attached of financial calculator

So PV = $831.95

After 1 year

Time period (Nper) = 17 years

Rate = 8.625%

Payment = $76.25

Attachment is attached of financial calculator

So, Pv = $912.46

So, we can calculate the holding period return by using following formula:

Holding period return = Total return ÷ Investment × 100

= ( $912.46 + $76.25 - $831.95) ÷ $831.95 × 100

= 18.84%

7 0

3 years ago

4. (10 points). Prezas Company's balance sheet showed total current assets of $4,250, all of which were required in operations.

dsp73

Answer: $3,025

Explanation:

The Net Working Capital is used to find out if the company is able to use its current assets to cater for it's Current Liabilities and as such is calculated by subtracting Current Assets from Current Liabilities.

= Current Assets - Current Liabilities

Current Liabilities = 975 + 250

= $1,225

The interest bearing funds are not included when Calculating Net Working Cap.

Net Working Capital = 4,250 - 1,225

= $3,025

6 0

3 years ago

Which one of these statements is true? A) Shareholders of the target firm must vote to approve an acquisition by stock. B) The m

AleksAgata [21]

Answer:

The answer is D. Acquisitions are sometimes involuntary or even hostile

Explanation:

Out of all the options, the correct one is D. Acquisitions are sometimes involuntary or even hostile.

Hostile acquisition is the type of acquisition when the board of directors of the target company is against takeover of the company while involuntary or voluntary acquisition is the type of acquisition that the board of directors of the target company duly approves the takeover.

5 0

4 years ago