Answer:
C) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.
Explanation:
July 1, prepaid rent fro 6 months
Dr Prepaid rent 24,000
Cr Cash
July 31, adjusting entry to record rent expense
Dr Rent expense 4,000
Cr Prepaid rent 4,000
total prepaid rent = 24,000 for six months
after one month, 24,000 / 6 = 4,000 must be recorded as rent expense and prepaid rent must be credited.
Answer: 8.23%
Explanation:
Firstly, we will calculate the cost of debt which will be:
= Yield (1-Tax rate)
= 9% × (1-0.34)
= 9% × 0.66
= 5.94%
Then, the Cmcost of preferred stock will be:
= 7/(104-9.40)
= 7/(94.6)
= 7.39%
We will also get the value of the cost of equity which will be:
= (Dividend expected common/Price common) + growth rate
= (2.50/76) + 8%
= 3.29% + 8%
= 11.29%
For Debt:
Cost after tax: 5.94
Weight = 50%
Weighted cost = 5.94 × 50% = 2.97
For Preferred stock:
Cost after tax: 7.39
Weight = 1%
Weighted cost = 7.39 × 10% = 0.74
For Common equity
Cost after tax: 11.29
Weight = 40%
Weighted cost = 11.29 × 40% = 4.52
Weighted average cost of capital = 2.97 + 0.74 + 4.52 = 8.23%
Answer:
$870
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Allowance for uncollectible accounts at 5%
= 5% * $302,000
= $1,510
Since the Allowance for Uncollectible Accounts was $640 (credit) before any adjustments, the bad debt expense for the year
= $1,510 - $640
= $870
Answer:
c. credit to notes payable
Explanation:
Based on the information given we were told that the Equipment which cost the amount of $16000 was purchased by paying the amount of $4000 as cash which means that if the company sign a NOTE PAYABLE for the remainder. The journal entry should include a: CREDIT TO NOTES PAYABLE
Answer:
B. the amount the customer can pay
Explanation:
Pricing is one of the 4 P's of marketing mix. It involves assigning the right value to one's goods and services. Choosing the right price on a product will determine the success of the business because if it is too high, customers will not afford it and therefore not be willing to buy it. However, if it is priced right and it meets their needs, they will most likely buy it , making choice B correct.
