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1 year ago

Assume a company has a $350 credit (not cash) sale. how would the transaction appear if the business uses accrual accounting?

1 answer:

6 0

The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

<h2>What is meant by accrual accounting?</h2>

This is what is also referred to as accrual based accounting. This type of accounting is one that has the transactions and all recorded in the books of accounts in such a way that they would reflect even though the service or the goods for which the payment is being made has not been received.

Hence from the explanation that we have here, the The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

Read more on accrual accounting here: brainly.com/question/14921038

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Answer:

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3 years ago

E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All o

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Answer:

E-Tech Initiatives Limited

Partial balance sheet

as on January 2, 2019

Liabilities

Long term Liabilities

Bond Payable ________________ $500,000

Add: Premium on Bond _________ <u>$10,000 </u>

_____________________________________ $510,000

Explanation:

First Calculate the issuance value

Issuance value = $500,000 x 102% = $510,000

The bond is issued on Premium, Now calculate the premium on bond value

Premium on bond = Issuance value - Premium on Bond

Premium on bond = $510,000 - $500,000

Premium on bond = $10,000

The bond payable value of $500,000 and Premium on the bond aer reported in the long term liability section of balance sheet.

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2 years ago

Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a $530,000 par value. The bonds pay interest on June 30 and Decem

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Answer:

1. Total interest rate is $166,790

2. Refer to the attached file for the straight-line amortization table for the bonds' life.

To record interest rate paid in 30th June 2018:

Dr Interest expenses 16,679

Dr Premium on bond payable 4,521

Cr Cash 21,200

To record interest rate paid in 31st Dec 2018:

Dr Interest expenses 16,679

Dr Premium on bond payable 4,521

Cr Cash 21,200

Explanation:

Total interest rate as followed : Interest payment - Premium on bond payable = 530,000 x 8% /2 x 10 - (575,210 - 530,000) =166,790.

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3 years ago

Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com

Katyanochek1 [597]

Answer:

WACC = 7.48%

Explanation:

We can calculate the Firm's WACC by using Excel.

Let's assume this is our Excel Blank Sheet.

A B C D

1 Particulars Rate Weight Weighted rate

2 Debt = 7.75%(1 - 40%) 0.45 =B2×C2

= 4.65%

3 Equity = (0.65/(19 × (1 - 10%)))+6%

= 9.80% 0.55 = B3×C3

4 WACC =SUM(D2:D3)

<h3>Output:</h3>

A B C D

1 Particulars Rate Weight Weighted rate

2 Debt = 4.65% 45% 2.09%

3 Equity = 9.80% 55% 5.39%

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