Answer:
d) debit to cash for $8,820
Explanation:
The Journal entry is shown below:-
Cash Dr, $8,820 ($9,000 - 2% × $9,000)
To Accounts Receivable $8,820
(Being is recorded)
Here we debited the cash as increases the assets and credited the accounts receivable as it decreases the assets.
Working note:
Net sales = Sales - Sales returns
= 10,000 - $1,000
= $9,000
Answer:
$1,125,000
Explanation:
The total amount of property, plant, and equipment will appear under the Non-Current Assets section of the Balance Sheet. Thus prepare the Non Current Asset Section as follows :
Non Current Asset Section
Land $100,000
Land held for future use $150,000
Office Building $700,000
Equipment $450,000
Office Furniture $150,000
Accumulated Depreciation ($425,000)
Total $1,125,000
Answer:
The accrued interest receivable is $2000
Explanation:
Accrued interest receivable refers to interest earned by a company but has not received in cash. This happens when the cash to be paid as interest falls outside an accounting period. Accrued interest receivable is an asset account on the investor's books and a current liability on the issuer's books.
Since the accrued interest is to be between December 1 and December 31, the time period is 1 month = 1/12 years.
loan percent = 12% = 0.12
loan amount = $200000
The accrued interest receivable = Time period × loan percent × loan amount = (1/12) × 0.12 × 200000 = $2000
The accrued interest receivable is $2000
Answer and Explanation:
The preparation of the operating activities section is shown below:
Rodriguez Company
Statement of Cash Flows (partial)
Cash flows from operating activities:
Net loss $ (6,400)
Adjustments
Add: Depreciation expenses $4,500
Add: Amortization of copyright $200
Add: Decrease in accounts receivable $5,000
Add: Increase in salaries payable $11,000
Less: Decrease in other current liabilities -$1,800
Net cash flow from operating activities $12,500
The negative sign reflects the cash outflow and the positive sign reflects the cash inflow
Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
