When a company collects the face value of a long-term investment in bonds at maturity, _______

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $70,000 and $3,600, r

tatyana61 [14]

Answer:

Uncollectible account expense $8,600

Explanation:

The computation of the amount as the Uncollectible Accounts Expense on its Year 2 income statement is given below:

Allowance account - Beg year 2 $3,600 Credit

Written off account $6,600 Debited by

Unadjusted balance in Allowance account $3000 Debit

Adjusted balance required in Allowance account $5,600 Credit

Uncollectible account expense $8,600

6 0

3 years ago

The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption

Vera_Pavlovna [14]

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions can not be used in raising funds or additional funds that are needed by the industry in its expansion.

8 0

3 years ago

Draw a demand for dollars curve. Label it D. Draw a supply of dollars curve. Label it S. Draw a point at the equilibrium quantit

brilliants [131]

Answer:

The forces of demand and supply in the market will pull the foreign exchange market into equilibrium.

Explanation:

When there is a surplus of dollar in the foreign exchange market the forces of demand and supply will pull the foreign exchange market into equilibrium. i.e. The exchange rate will be reduced to bring the exchange market to equilibrium. without change in demand or supply.

attached below is the required graph.

3 0

2 years ago

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 16,000, $7 par, common sha

Otrada [13]

Answer:

See the answers and explanation below.

Explanation:

a. the necessary journal entries assuming a small (10%) stock dividend

Date Details Dr ($) Cr ($)

Sept. 1 Stock Dividends (16,000 * 36 * 10%) 57,600

Common Stock (16,000 * 7 *10%) 11,200

Additional Paid-in Capital - Common Stock 46.400

To record a small (10%) stock dividend on common stock. .

b. the necessary journal entries assuming a large (100%) stock dividend

Date Details Dr ($) Cr ($)

Sept. 1 Stock Dividends (16,000 * 7 * 100%) 112,000

Common Stock (16,000 * 7 *10%) 112,000

To record a large (100%) stock dividend on common stock. .

c. the necessary journal entries assuming a 2-for-1 stock split.

"No journal entry required"

Note: Although no journal entry is required here but the number of common stock will increase to 32,000 (i.e. 16,000 * 2 = 32.00).

6 0

3 years ago

Clearly assigned roles and responsibilities are particularly important in family businesses.

coldgirl [10]

Answer:

True

Explanation:

The statement is true, roles and responsibilities are very important in family business. Relatives regularly fill more than one job in the organisation so as to keep it running. Likewise, if the administration covers and family jobs and duties are uncertain to everybody, opposition or even absolute battling is bound to happen in light of the fact that the individuals included know each other well indeed.

8 0

3 years ago

Read 2 more answers

When a company collects the face value of a​ long-term investment in bonds at​ maturity, ________.

When a company collects the face value of a long-term investment in bonds at maturity, ________.