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3 years ago

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

1 answer:

6 0

In recording business transactions, evidence that an accounting transaction has taken place is obtained from source documents. A source document is the first and origional way that transactions are entered for an accounting system. Everything in the source documents then gets transferred into a companies accounting system and stored for later use. The first and original documents are the source documents because they are the source of where the first transactions were recorded.

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Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. Th

laila [671]

Answer:

$527,737

Explanation:

The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.

The Bond Parameters can be set as :

PV = - $5,259,870

FV = $5,700,000

PMT = ($5,700,000 x 8%) ÷ 2 = $228,000

N = 5 x 2 = 10

YTM = 10 %

P/YR = 2

Constructing an amortization schedule for 2020 gives :

Date Capital Portion Interest Balance

June 30 $34,994 $262,994 $5,294,864

Dec 30 $36,743 $264,743 $5,331,607

Total $71,737 $527,737 $5,331,607

therefore,

The amount of interest expense to be reported for 2020 is $527,737

7 0

3 years ago

Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,000 shares of its own common stock

Andrei [34K]

Answer:

Revised Equity Section of Balance Sheet After October 11

Common Stock at par $820,000

Paid-in capital in excess of Par $266,000

Total Contributed Capital $1,086,000

Retained earnings $ 944,000

Total $2,030,000

Less: Treasury Stock ($ 210,000)

Total Stockholder's Equity $1,820,000

Treasury stock = 6,000 * 35

= $210,000

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3 years ago

Shelly manages a jewelry store that offers a range of different designs to customers. She recently received new inventory of som

sweet-ann [11.9K]

Answer:

The correct option is D

Explanation:

As Shelly who manages the jewellery store received an inventory, which wants to display in her store. So, in order to make the design visible to every customer who visit her store or passes by her store, will see the design. Therefore, she should place the design at the eye level so that every customer could easily see the design.

4 0

3 years ago

Working Capital includes which of the following?

Contact [7]

Owners capital and cash

3 0

3 years ago

Al’s Automotive started the year with total assets of $250,000 and total liabilities of $180,000. During the year the business r

34kurt

Answer:

A :$210,000

Explanation:

The accounting equation gives the relationship between the various elements of the balance sheet. These are the assets, liabilities and Stockholders' equity

Assets = Stockholders' equity + Liabilities

Retained earnings is the portion of the company's earnings that is added to the common stock to get the Stockholders' equity.

Retained earnings added = $375,000 - $200,000 - $35,000

= $140,000

Stockholders' equity at the end of the year = $250,000 - $180,000 + $140,000

= $210,000

8 0

3 years ago