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kotegsom [21]
3 years ago
12

Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019. For t

he year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement. What amount did Vaughn debit to the appropriate account in 2020 to write off actual bad debts?
Business
1 answer:
Colt1911 [192]3 years ago
8 0

Answer: $19000

Explanation:

From the question, we are informed that Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019 and that for the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement.

The amount that Vaughn debited to the appropriate account in 2020 to write off actual bad debts will be:

= $31000 - ($190000 - $178000)

= $31000 - $12000

= $19000

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If asset owners in Japan and the United States consider Japanese and U.S. assets as good substitutes for each other and if the U
Aleksandr [31]

Answer: financial inflow will reduce the United States interest rate.

Explanation:

The options include:

a. financial inflow will reduce the United States interest rate.

b. financial outflow will increase the Japanese interest rate.

c. The interest rate gap between the United States and Japan will be eliminated.

d. Loanable funds will be exported from the U.S. to Japan

e. the interest rate in the United States will equal theinterest rate in Japan.

Based on the information given in the question, the things that will occur include:

• financial outflow will increase the Japanese interest rate.

• The interest rate gap between the United States and Japan will be eliminated.

• Loanable funds will be exported from the U.S. to Japan

• the interest rate in the United States will equal the interest rate in Japan.

Therefore, option A is the correct option.

6 0
3 years ago
Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid
Genrish500 [490]

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

3 0
3 years ago
Given the following information, analyze XYZ Company's liquidity. Year 2013 Total quick assets $30,000 Total current assets $40,
kogti [31]

Answer:

  • A. They are more liquid than others in their industry.
  • C. They have sufficient quick assets to pay off short-term debt if needed.

Explanation:

The Acid-test and current ratios are used to measure the liquidity of a company with higher figures meaning more liquidity. XYZ Company has a both a higher acid-test and current ratio so they are more liquid than others in their industry.

The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.

6 0
3 years ago
Sunbird Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Sunbird Theatre Inc. has declared the foll
bulgar [2K]

Answer:

See the explanation below.

Explanation:

1. Calculation of total dividend for six years (2011 to 2016)

Total dividend = 2011  dividend + 2012  dividend + 2013  dividend + 2014  dividend + 2015  dividend + 2016  dividend

Total dividend = $20,000 + $36,000 + $70,000 + $90,000 + $102,000  + $150,000  

Total dividend = $468,000  

2. Calculation of per-share dividends declared on each class of stock for each of the six years

Note that preferred stock holders are entitled to dividend first before the common stock holders. It is what remains after paying the preferred shareholders that the common shareholders get. Therefore, the calculation is done as follows:

2011:

Preferred dividend per share = Preferred dividend rate × Preferred stock price

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Expected total preferred dividend = $0.30 × 100,000 = $30,000

Actual dividend declared = $20,000

Preferred dividend declared per share = $20,000 ÷ 100,000 = $0.20

Preferred dividend arrears (Cumulative) = $30,000 - $20,000 = $10,000

Preferred dividend per share arrears (Cumulative)  = $10,000 ÷ 100,000 = $0.10

Since preferred stock holders are entitled to dividend first before the common stock holders and the dividend declared is lower than the dividend payable to the preferred shareholders, the common stockholders will receive zero dividend in 2011.

Also, since it is stated in the question that the preferred 1% stock is cumulative

2012:

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Expected total preferred dividend = $0.30 × 100,000 = $30,000

Total dividend declared = $36,000

Preferred dividend declared per share = $30,000 ÷ 100,000 = $0.30

To pay preferred dividend in arrears = $36,000 - $30,000 = $6,000

Preferred dividend arrears per share paid = $6,000 ÷ 100,000 = $0.06

Balance of preferred dividend arrears = $10,000 - $6,000 = $4,000

Balance of preferred dividend per share arrears  = $4,000 ÷ 100,000 = $0.04.

Total preferred dividend paid in 2012 = $36,000

Preferred dividend per share paid in 2012 = $36,000 ÷ 100,000 = 0.36

Again for the same reason as stated above, the common stockholders will also receive zero dividend in 2012.

2013:

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Expected total preferred dividend = $0.30 × 100,000 = $30,000

Total dividend declared = $70,000

Preferred dividend declared per share = $30,000 ÷ 100,000 = $0.30

To pay preferred dividend arrears = $4,000

Preferred dividend arrears per share paid = $4,000 ÷ 100,000 = $0.04

Common stock dividend = $70,000 - $34,000 = $36,000

Common stock dividend per share = $36,000 ÷ 400,000 = $0.09.

2014:

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Actual total preferred dividend = $0.30 × 100,000 = $30,000

Preferred dividend declared per share = $30,000 ÷ 100,000 = $0.30

Total dividend declared = $90,000

Common stock dividend = $90,000 - $30,000 = $60,000

Common stock dividend per share = $60,000 ÷ 400,000 = $0.15.

2014:

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Actual total preferred dividend = $0.30 × 100,000 = $30,000

Preferred dividend declared per share = $30,000 ÷ 100,000 = $0.30

Total dividend declared = $102,000

Common stock dividend = $102,000 - $30,000 = $72,000

Common stock dividend per share = $72,000 ÷ 400,000 = $0.18.

2015:

Expected preferred dividend per share = 1% × $30 = 0.30 per share

Expected total preferred dividend = Expected preferred dividend per share × Number proffered share

Actual total preferred dividend = $0.30 × 100,000 = $30,000

Preferred dividend declared per share = $30,000 ÷ 100,000 = $0.30

Total dividend declared = $150,000

Common stock dividend = $150,000 - $30,000 = $130,000

Common stock dividend per share = $130,000 ÷ 400,000 = $0.33.

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