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Amiraneli [1.4K]
3 years ago
12

On December 1, Year 1, El Primero Company purchases inventory from a foreign supplier for 40,000 coronas. Payment will be made i

n 90 days after El Primero has sold this merchandise. Sales are made rather quickly, and El Primero pays this entire obligation on February 15, Year 2. The following exchange rates for 1 corona apply:
Date U.S. Dollar per Corona
December 1, Year 1 ……………………. $0.87
December 31, Year 1 …………………… 0.82
February 15, Year 2 ……………………. 0.91
Required:
Prepare all journal entries for El Primero in connection with the purchase and payment.

1/28/Y1 Foreign exchange loss $3,600

Accounts payable (coronas) [40,000 x ($.91-$.82)] $3,600

Accounts payable (coronas) $36,400
Cash $36,400

Why is the last journal entry dated 1/28/Y1?
Business
1 answer:
choli [55]3 years ago
7 0

Answer:

The answer to the question is attached with the document.

Download docx
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Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sol
AysviL [449]

Answer:

Charu Khanna

The Net capital loss is:

= $2,000.

Explanation:

a) Stock Transactions and Data during 2019:

Stock                                  Date      Date Sold  Sales Price ($) Cost Basis ($)

                                      Purchased

4,000 shares Green Co. 06/04/07 08/05/19       12,000              3,000

500 shares Gold Co.        02/12/17 09/05/19      54,000            62,000

5,000 shares Blue Co.   02/04/08  10/08/19       18,000            22,000

100 shares Orange Co.     11/15/18   07/12/19       19,000            18,000

Total                                                                   $103,000       $105,000

Net capital loss:

Long-term capital loss = $3,000

Short-term capital gain = $1,000

Net capital loss =            $2,000 ($3,000 - $1,000)

8 0
2 years ago
Patrick patrone (single, 2 allowances), $925 wages __________ carson leno (married, 4 allowances), $1,195 wages __________ carli
Furkat [3]

<u>Solution and Explanation:</u>

1) P<u>atrick patrone </u>

Single and 2 allowances =\$ 925-\$ 155.80-\$ 155.80=\$ 613.40

It falls under the category of Over $509 but under $1,631

The amount of income tax that he withholds is $36.70 + 12% of excess over $509

\$ 36.70+12 \%(\$ 613.40-\$ 509)=\$ 36.70+12 \% \text { of } \$ 104.40=\$ 36.70+\$ 12.53=\$ 49.23

The amount to withhold for Federal income tax is $49.23.

2) <u>Carson Leno, married and 4 allowances </u>

= $1,195 - $155.80 - $155.80 - $155.80 - $155.80 = $571.80

The wages falls under the category of Over $444 but under $1,177.

The amount of income tax that he withholds is $0 + 10% of excess over $444.

\$ 0+10 \%(\$ 571.80-\$ 444)=\$ 0+10 \% \text { of } \$ 127.20=\$ 0+\$ 12.72=\$ 12.72

The amount to withhold for Federal income tax is $12.72

3) Carli lintz single, zero allowances and wages is $700.

$700 - $0 = $700 (zero allowance)

The wages falls under the category of Over $509 but under $1631.

The amount of income tax to withhold is $36.70 + 12% of excess over $509

\$ 36.70+12 \%(\$ 700-\$ 509)=\$ 36.70+12 \% \text { of } \$ 191 .=\$ 36.70+\$ 22.92=\$ 59.62

The amount to withhold for Federal income tax is $59.62.

4) Gene hartz. Single, 1 allowance and $2,500 wages.

$2,500 - $155.80 = $2,348.20

The wages fall under the category of Over $1,631 but under $3,315

The amount of income tax to withhold is $171.34 + 22 % of excess of $1,631 \begin{aligned}&\$ 171.34+22 \%(\$ 2348.20-\$ 1631)=\$ 171.34+22 \% \text { of } \$ 717.20 .=\$ 174.34+\$ 157.78=\\&\$ 332.12\end{aligned}The amount for Federal income tax is $332.12

5) Mollie Parmer. Married, 2 allowances and wages is $3,600

\$ 3,600-\$ 155.80-\$ 155.80=\$ 3,288.40

The wages falls under the category of Over $1,177 but under $3,421

The amount of income tax to withhold is $\$ 73.30+12 \%$ of excess over $\$ 1,177$ \begin{aligned}&\$ 73.30+12 \% \text { of }(\$ 3,288.40-\$ 1,177) .=\$ 73.30+12 \% \text { of } \$ 2,111.40 .=\$ 73.30+\$ 253.37=\\&\$ 326.67\end{aligned}The amount for Federal income tax is $326.67.

<u>NOTE :</u> - the withholding allowance is deducted from the wages, the amount of single allowance is $155.80.

6 0
3 years ago
Hi-Tek plans to pay a $6 per share dividend one year from today, and will increase the dividend by 4 percent per year forever. W
Lunna [17]

Answer:

The current share price if the required return on this stock is 16 percent is $50.

Explanation:

price = dividend next year /(required rate of return - growth rate)

         = 6/(16% - 4%)

         = 50

Therefore, The current share price if the required return on this stock is 16 percent is $50.

5 0
3 years ago
Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door. Since the ope
oee [108]

Answer:

The correct answer is letter "A": increased.

Explanation:

Opportunity cost is the return of the option chosen compared to the forgone choice. Opportunity cost can also be defined as the return of the next best available option aside from the option taken. The more a good or service is consumed, the lower its opportunity cost turns. <em>The fewer the good or service is requested, the higher its opportunity cost</em>.

Thus, <em>because Skeeter's Skeeball Castle business has dwindled, the opportunity cost of playing skeeball at Skeeter's has increased.</em>

3 0
3 years ago
Which type of account typically has low liquidity?
il63 [147K]

Option (d) is the correct option.

<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately. </u>

Further Explanation:

Liquidity:

Liquidity is a measurement of an asset’s ability to convert it into cash. If any specific asset can be converted into cash quickly, then it is considered a liquid asset.  

Example: Stock, Debtors, Marketable securities are liquid assets as they can be converted into cash very quickly. On the other hand, land and building are not liquid assets as they would require a longer time to convert into cash.

Low liquidity account:

<u>Certificate of deposit is a low liquidity account. </u>

Certificate of deposit:

Certificate of deposit is a saving account. In certificate of deposit, the customer of the bank deposits lump-sum amount in the bank account, and it can be withdrawn after a specified time. Certificate of deposit has a higher interest rate than a normal saving account. Generally, the tenure of the certificate of deposit varies from 1 year to 10 years. The customer of the bank cannot withdraw the funds before the maturity date of the deposit.

Certificate of deposit has lower liquidity because the funds cannot be withdrawn before the maturity date of the deposits. Once deposited, the funds can be converted to cash after the maturity period, which varies from 1 year to 10 years as per the agreement with the customer.  

<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately </u>

<u> Checking account, savings account, and money market account has high liquidity as money can be readily withdrawn from these accounts. </u>

<u> </u>

Learn more:

1. Learn more about cash budget

brainly.com/question/12985585

2. Learn more about the role of money

brainly.com/question/12984919

3. Learn more about the cash deficiency

brainly.com/question/12981857

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

Keywords: Account, Bank account, Bank, Liquidity, High liquidity, Low liquidity, Saving account, Checking account, Money market account, Certificate of deposit, Converted to cash.

3 0
3 years ago
Read 2 more answers
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