Source: Net
Find the GCD (or HCF) of numerator and denominator
GCD of 112 and 220 is 4
Divide both the numerator and denominator by the GCD
112 ÷ 4
220 ÷ 4
Reduced fraction:
28
55
In accounting, the controlling account (also known as an adjustment or controlaccount) is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail.
Answer:
Receivables Turnover Ratio is 4
Explanation:
Computation of Average Receivables
Opening Receivables $ 40,000
Ending receivables <u>$ 60,000</u>
$ 100,000
Average receivables $ 50,000
Net Credit Sales $ 200,000
The Receivables Turnover ratio is calculated by dividing the Net Credit Sales by the Average Receivables.
Receivables Turnover Ratio = Net Credit Sales / Average Receivables
$ 200,000/ $ 50,000 = 4
Answer:
Industrial Analysis.
Explanation:
Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the profit potential of the industry. The research that Terry was doing is called <u>Industrial </u>analysis.
Industrial Analysis: It is an analysis or function conducted by the owner of business to understand the dynamics and workflow of any specific industry. It help to know the industrial environment to gain the competitve advantage and potential of the business in the industry. Later on the basis of Industrial analysis, SWOT analysis is conducted to know Strength, weakness, opportunity and threats of a company.
Answer:
Please see journal entries below
Explanation:
The entries below are made in the books of Farmland Corporation, the issuer of the bond.
Upon redemption, journal entries would be as follows.
Debit: Bond Account $396,000 (cash paid to bond investors)
Credit: Cash/Bank Account $396,000 (cash paid to bond investors)
Debit: Profit/Loss Account $8,000 (premium paid over carrying value of bond, calculated below: )
Credit: Bond Account $8,000 (premium paid over carrying value)
Premium over carrying value is calculated as follows:
Redemption value - carrying value
= 
=
= $396,000 - $388,000
= $8,000
