Answer: d. Debit Cash $652.8; debit Credit Card Expense $27.2 and credit Sales $680
Explanation:
From the question we are informed that MacKenzie Company sold $680 of merchandise to a customer who used a Regional Bank credit card and that Regional Bank deducts a 4.0% service charge for sales on its credit cards.
We.are further told that MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment in approximately 5 days.
For the recording in the journal entry, it should be noted that there will be a card expense of (4% × $680) = $27.2 who will be debited, therefore cash to be debited will be: ($680 - $27.2 = $652.8) and there will be sales of $680 which will be credited.
Therefore, the answer is option d.
Answer:
$81,333
Explanation:
Williams company issued an principal of $80,000
The principal was issued at a 5% rate
The time period is 120-day payable to Brown industries.
The first step is to calculate the interest
Interest= principal × rate × time
= $80,000×0.05×(120/360)
= $80,000 × 0.05 × 0.33333
= $1,333.32
Therefore, the maturity value can be calculated as follows
Maturity value= Interest+principal
= 1,333.32+$80,000
= $81,333.2
= $81,333
Hence the maturity value on the note is $81,333
Answer: a. $35,000.
Explanation:
Given Data:
Starting Balance = $530,000
Closing Balance = $452,000
Depreciation expenses = $46,000
computing of cash received we need to balance the depreciation.
Accumulated depreciation = Starting balance of accumulated depreciation + depreciation expense - Closing balance of accumulated depreciation
= $530,000 + $46,000 - $452,000
= $124,000
subtracting this amount from the sale value of the equipment.
= $159,000 - $124,000
= $35,000
Cash received from sale of equipment is $35,000
Answer:
$70,056
Explanation:
Per the above information, we need to calculate first, the Earnings before interest and tax (EBIT).
Sales
$361,820
Less: costs
($267,940)
Less: Depreciation expense
($16,500)
Earnings before interest and tax (EBIT)
$77,380
The next step is to calculate the applicable tax rate.
Tax [$77,380 - $9,310] × 0.35
$23,824.50
We will then calculate the Operating cash flow.
Earnings before interest and tax (EBIT)
$77,380
Add back depreciation expense
$16,500
Less tax
($23,824.50)
Operating cash flow (OCF)
$70,056
Therefore, the amount of operating cash flow is $70,056.
