Answer:
Borrow $19,500
Explanation:
The movement in the cash balance between the beginning an end of a period may be expressed as
opening balance + cash collection - cash disbursed = closing balance
As such, where the company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance
= $11,000 + $31,000 - $36,500
= $5,500
If the company is owing the bank $15,000 then the company would still owe
= $5,500 - $15,000
= ($9,500)
If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed
= $10000 + $9500
= $19,500
Answer:
You will receive 1% of your transaction back, in cash, at the store.
Explanation:
I'm not 100% sure but I think this is correct
Answer:
1. Journalize the transactions for Rose's investment in Sprouts' stock:
<u>March 1 2018</u>
Dr Trading securities - Sprouts's stock 12,000
Cr Cash 12,000
(to record the purchase of Sprout's stock)
<u>October 1 2018</u>
Dr Cash 350
Cr Dividend Income 350
(to record the dividend receipt from Sprout's stock)
<u>October 31 2018</u>
Dr Cash 12,250
Cr Gain on disposal of short-term investment 250
Cr Trading securities - Sprouts's stock 12,000
(to record disposal of Sprout's stock)
2. Net effect of the investment on Rose's net income for the year ended December 31, 2018: $600.
Explanation:
1. As this investment is short-term investment and is held for sell, fair value methodology should be applied to record this transaction. The detailed journal entries are as in answer part.
2. As fair value methodology is applied, the net income of Rose will include: dividend income + gain on disposal of short-term investment = $350 + $250 = $600.
