Answer:
Revised balance = $8000
Explanation:
Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 150 comma 000, and management estimates 4% will be uncollectible.
Milo Company's balance of Allowance for Uncollectible Accounts after adjustments, was $ 5 comma 000.
The following year, Milo Company wrote off $ 3 comma 000 of old receivables as uncollectible.
The Allowance account balance now will be:
Amount of Uncollectible Accounts for the year = 4% x $150,000 = $6000
Previous balance is $5,000 less amount written off $3000 = $2000
Revised balance = $6,000 + $2000 which is $8000
Answer:
Date - December 14, 2020
Debit : Dividend $16,000
Credit : Shareholders for dividends $16,000
Date - January 16, 2021
Debit : Shareholders for dividends $16,000
Credit : Cash $16,000
Date - December 12, 2021
Debit : Dividend $62,000
Credit : Shareholders for dividends $62,000
January 15, 2022
Debit : Shareholders for dividends $62,000
Credit : Cash $62,000
Explanation:
Dividends are initially declared before they are paid to the respective shareholders. So it is important to first record the journal at the <em>declaration date</em> of the dividend, then the <em>payment date</em> of the dividend as shown above.
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $25,400
Adjustment made:
Add: Decrease in accounts receivable $5,000 ($20,000 - $15,000)
Less: Decrease in accounts payable -$450 ($8,750 - $9,200)
Total of Adjustments $4,550
Net Cash flow from Operating activities $29,950
Answer:
Capital loss = $(5.46)
Explanation:
<em>Return on investment would be the proportion of the amount invested that is earned as profit. </em>
<em>Profit here includes dividends earned plus capital gains less broker's commission.
</em>
<em>Capital gains/(loss) represents an appreciation/(depreciation) in the stock value. It is usually measures by the change in the stock value over the investment period under focus</em>
Capital gain/loss on stock = stock price at the end - stock price at the beginning
Stock price at the end= 48.78
Stock price at the beginning = 54.24
Capital loss = (48.78 - 54.24) = $(5.46)
The dividend would not be included simply it is not a capital item
Capital loss = $(5.46)
Answer:
$310,080
Explanation:
Incremental revenue refers to the additional revenue generated by a certain project or activity. In this case, your sales should increase by 16% from 102,000 units to 118,320 units. Total revenue will increase from $1,938,000 (= 102,000 x $19) to $2,248,080 (= 118,320 x $19).
The incremental revenue = $2,248,080 - $1,938,000 = $310,080
