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3 years ago

Why are adjusting entries necessary?

Business

1 answer:

qwelly [4]3 years ago

3 0

Answer:

Option A) To record revenues and expenses

Explanation:

The accounting accrual is an accounting method, it means that the company must record the revenues and expenses in the moment that the transactions occur and not when the payment is done.

By this method is always necessary to make adjustment entries to the accounting system if not it's impossible reflect all the transactions occured at this moment.

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Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the la

harina [27]

Answer:

a. Finance Bank

Explanation:

According to Statute of Fraud, the agreement must be in writing to be within the statute and enforceable. The oral contracts are usually enforceable but the transfer of land needs to be in writing to be enforceable according to law of Statute of Fraud. If the contract is in writing it would be adequate to be enforceable. While the contract with bank must have some written form which will make it enforceable contract by the finance bank.

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3 years ago

Read 2 more answers

Google ads was designed to deliver three things to every advertiser_______.

artcher [175]

Answer:

Advertiserment(s)

Explanation:

There are many words for advertisements.

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3 years ago

The abrupt end of long distance cattle drives in 1885 was primarily due toa. the development of railroad cars that could haul ca

vladimir1956 [14]

Answer:

a. the development of railroad cars that could haul cattle.

Explanation:

The abrupt end of long distance cattle drives in 1885 was primarily due to the development of railroad cars that could haul cattle.

It was the advent of expanding rail road lines that terminated the cattle drive through Kansas because the end points of the cattle trail shifted to meet expanding railroad lines.

It was logical that as the railroads expanded to meet the cattle drive, one had to give way to the other because cattle do stray and trains could haul cattle

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3 years ago

Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other

Rama09 [41]

Answer:

a. What is the present value of the free cash flows projected during the next 4 years?

the NPV of the firm's cash flows = $3/1.09 + $6/1.09² + $8/1.09³ + $16/1.09⁴ = $2,752,294 + $5,050,080 + $6,177,468 + $11,334,803 = $25,314,645

b. What is the firm’s horizon, or continuing, value?

to calculate terminal or horizon value at year 4, we must use the Gordon growth model formula:

terminal value = [$16,000,000 (1 + 3%)] / (9% - 3%) = $16,480,000 / 6% = $274,666,667

c. What is the firm’s total value today?

firm's total present value = $25,314,645 + ($274,666,667/1.09⁴) = $219,895,463

d. What is an estimate of Brandtly’s price per share?

Brandtly's share price = (firm's present value - total debt) / outstanding stocks = ($219,895,463 - $75,000,000) / 7,500,000 million stocks = $19.32 per stock

7 0

3 years ago

On January 1, 2020, Sheridan Company sold 10% bonds with a face value of $2750000. The bonds mature in five years, and interest

kodGreya [7K]

Answer:

$227,591.04

Explanation:

The computation of the interest expense is shown below;

The interest expense on the face value

= $2,750,000 × 10% × 6 months ÷ 12 months

= $137,500

And, the interest expense on the sale value

= $2,973,100 × 8% × 6 months ÷ 12 months

= $118,924

Now the closing balance would be

= $2,973,100 - $137,500 - $118,924

= $2,716,676

Now the interest on the same is

= $2,716,676 × 8% × 6 months ÷ 12 months

= $108,667.04

Now the interest expense is

= $108,667.04 + $118,924

= $227,591.04

7 0

3 years ago