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Tom [10]
3 years ago
14

Prepare the December 31 entry assuming it is probable that Scorcese will be liable for $900,000 as a result of this suit. (If no

entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
Misha Larkins [42]3 years ago
5 0

Answer:

Debit legal expense/penalties (p/l)  $900,000

Credit Provisions (B/s)                      $900,000

Explanation:

According to IAS 37 Provisions, contingent liabilities and contingent assets, a provision is to be recorded where there is a present obligation as a result of a past event and the outflow of economic benefits to satisfy the obligation is probable.

Hence if it is probable that Scorcese will be liable for $900,000 as a result of this suit, a provision is needed and will be recorded by;

Debit legal expense/penalties (p/l)  $900,000

Credit Provisions (B/s)                      $900,000

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A local business woman borrows $14,000.00 at $299.70 per month for 62 months, how much total
eduard
If you multiply $299.70x 62- 14,000months you get = 4,581.4 so yeah
4 0
3 years ago
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe
katrin [286]

Answer:

2.9652%

Explanation:

to determine the cost of debt we must use the FMV of the bonds plus the YTM:

first bond:

FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual

second bond:

FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual

total debt = $3,924,000 + $7,505,000 = $11,429,000

weighted average after tax cost of debt:

{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%

6 0
3 years ago
Suppose an investment offers to triple your money in 24 months (don't believe it). What rate of return per quarter are you being
Natasha2012 [34]

Answer:

30.77%

Explanation:

Assume investment = $1

Assume mount after 24 months = $5

Number of quarters in 24 months = 24/4 = 6

Future value = P*(1+r)^n; Where P is payment, r is interest rate per period, n is number of periods

5000 = 1*(1+i)^6

1*(1+i) = 5^(1/6)

1+i = 1.30766048601

i = 1.30766048601 - 1

i = 0.30766048601

i = 30.77%

So, the rate of return per quarter being offered is 30.77%

8 0
3 years ago
Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31.Adju
andreev551 [17]

Question Completion:

KIRK Enterprises

Trial Balance as of July 31:

Account Titles                   Debit        Credit

Cash                         36,000

Prepaid Insurance          12,000

Fees Receivable                            56,000

Supplies                         12,000

Equipment                60,000

Accumulated Depreciation               12,000

Unearned Revenue                         20,000

Accounts Payable                            32,000  

Common Stock                               84,000

Dividends                         4,000

Service Revenue                            80,000

Advertising Expense    28,000

Wage Expense             20,000      

Totals                          228,000   228,000

Required:

Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.

Answer:

Kirk Enterprises

                                        Unadjusted           Adjustments           Adjusted

                                       Trial Balance                                      Trial Balance

Account Titles               Debit     Credit    Debit   Credit       Debit       Credit

Cash                       36,000                                               36,000

Prepaid Insurance        12,000                             3,000          9,000

Fees Receivable       56,000                                              56,000

Supplies                       12,000                             4,000          8,000

Equipment              60,000                                              60,000

Accumulated Depreciation       12,000                1,000                        13,000

Unearned Revenue                  20,000     15,000                                 5,000

Accounts Payable                     32,000                                                32,000

Wages Payable                                                    2,000                         2,000

Common Stock                        84,000                                                 84,000

Dividends                       4,000                                               4,000

Service Revenue                     80,000              15,000                       95,000

Advertising Expense  28,000                                             28,000

Wage Expense           20,000                   2,000                22,000

Insurance Expense                                    3,000                  3,000

Supplies Expense                                      4,000                  4,000

Depreciation Expense                               1,000                   1,000      

Totals                       228,000 228,000 25,000 25,000 231,000  231,000

Explanation:

a) Adjustments:

Depreciation expense $1,000 Accumulated Depreciation $1,000

Wages expense $2,000 Wages payable $2,000

Supplies expense $4,000 Supplies $4,000 ($12,000 - $8,000)

Unearned revenue $15,000 Service Revenue $15,000 ($20,000 * 75%)

Insurance expense $3,000 Prepaid Insurance $3,000 ($12,000 - 9,000)

5 0
2 years ago
What’s the easier way to save money weekly from your payroll
I am Lyosha [343]
Not sure how specific this has to be but setting percentages of where you want your money would be a great way if that’s an option.
4 0
3 years ago
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