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3 years ago

RecRoom Equipment Company received a $9,200, six-month, 9 percent note to settle a $9,200 unpaid balance owed by a customer.

Business

1 answer:

PolarNik [594]3 years ago

8 0

Answer:

RECROOM EQUIPMENT COMPANY

Date Description DR CR

a. Nov 1 Note Receivable 8000

Allowance on debt 1,200

Account Receivable 9,200

Being the settlement of customers debt

b. Dec 31 Interest receivable 120

Interest Income 120

Being the interest accrued at the year end

c. 30 April Cash 720

Interest receivable 120

Interest income 600

Being the receipt of interest at maturity date

d. April 30 Cash 8000

Note receivable 8,000

Being the settlement of principal at maturity

Explanation:

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Machinery was purchased for $360000 on January 1, 2022. Freight charges amounted to $15000 and there was a cost of $30000 for bu

Svetradugi [14.3K]

Answer:

$70,000

Explanation:

The book value of an asset includes the purchase price and other related costs that would make it ready to operate. For this machinery, its book value will include cost price, transport, and installation expenses.

The cost will be $360, 000 +$15,000 + 30,000

=$405,000

The depreciable amount

= Asset cost - salvage value

=$405,000 -$55,000

=$350,000

Depreciation per year

the depreciation rate is 1/10 x100 =10%

depreciation per year =10/100 x $350,000

=0.1 x $350,000

=$35,000

two-year depreciation will $70,000 ( $35,000 x 2)

7 0

3 years ago

An example of technological change is A. a firm rearranging the layout of a retail store to increase salesthe layout of a retail

nirvana33 [79]

Answer:

The correct answer is option D.

Explanation:

Technological change refers to an improvement in the efficiency of a product such that the output level increases without an increase in input.

Here, the rearranging of layout and training of workers is technological change as they are likely to increase production without an increase in inputs.

Damages caused by a hurricane will reduce the output level, so it will not be classified as a technological change.

3 0

2 years ago

This year Maria works 1,200 hours as a computer consultant, 320 hours in a real estate development business, and 400 hours in re

Gnesinka [82]

Answer:

$ 25000 can be deducted under the exception for real estate

Explanation:

of the $26,000 real estate passive activity loss generated, $ 25000 can be deducted under the exception for real estate. The limit is of special allowance of $25000.

7 0

2 years ago

You are the CFO of Designer Brands and expect your firm to generate FCFs of $550,000 per year (starting next year) for 10 years.

Lemur [1.5K]

I would value the Designer Brand as $16,970,189.21.

<h3>What is the value of the designer brand?</h3>

The value of the designer brand can be determined using the two-stage FCF growth model.

FCF each year from year 1 to 10 = $550,000

FCF from year 11 = ($550,000 x 1.01) / (0.04 - 0.01) = $18,516,666.67

The present value of the FCF would be determined next:

($550,000 / 1.04) + ($550,000 / 1.04^2) + ($550,000 / 1.04^3) + ($550,000 / 1.04^4) + ($550,000 / 1.04^5) + ($550,000 / 1.04^6) + ($550,000 / 1.04^7) + ($550,000 / 1.04^8) + ($550,000 / 1.04^9) + ($550,000 / 1.04^10) + ( $18,516,666.67 / 1.04^10) = $16,970,189.21

To learn more about FCF, please check: brainly.com/question/8058024

3 0

1 year ago

Match each of the options above to the items below.

Talja [164]

Answer:

a. Revenues, expenses. and dividends - Temporary accounts

b. List of permanent accounts and their balances - Post-closing trial balance

c. Transfer of temporary balances to retained earnings - Closing entries

d. List of permanent and temporary accounts and their balances - Adjusted trial balance

e. Assets, liabilities, and stockholders' equity - Permanent accounts

5 0

2 years ago