Answer:
Leno Company will record a debit to Cash in the amount of: D. $9,800
Explanation:
The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
Fallon Company pays the invoice within the discount period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.
On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800
Leno Company will record a debit to Cash in the amount of $9,800
Answer:
a)Jada's basis for depreciation in the property is NIL.
b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Explanation:
Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).
According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.
IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.
Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.
2) Personal property with no intrinsic value:
Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.
Answer: Please see the required journals below:
December 31:
Debit Bad debt expense $6,034
Credit Allowance for doubtful accounts $6,034
February 1:
Debit Allowance for doubtful accounts $431
Credit Accounts receivables $431
June 5:
Debit Cash $431
Credit Bad debt recovery (income statement) $431
Explanation: The company estimates its bad debt expense as percentage of sales. In this case 0.7% of its annual sales of $862,000 was deemed as uncollectible, that is, 0.7% x $862,000 = $6,034. The required journals to recognize this bad debt expense is provided above. However, since there was an existing provision, which resides in the allowance account, a write-off would definitely hit that account in order to extinguish the accounts receivable portion. Upon recovery of the write-off, we cannot reinstate the receivable since it was already extinguished but we need to recognize the recovery as a gain.
Answer:
Consider the following calculations
Explanation:
TC=0.2Q2 - 5Q + 30,
MC=0.4Q - 5.
Equilibrium condition
MC=P
0.4Q - 5 = 6
0.4Q = 11
Q = 11/.4
=27.5
Profit = TR - TC
=27.5*6 - .2(27.5)2 -5(27.5)+30
=165 -756.25 -137.5 +30
= - 698.5
Firm is incurring loss
Firm will continue to produce as long as it is able to recover AVC
AVC =0.2Q -5
=0.2(27.5) -5
=5.5 -5
=0.5
Hence firm will continue to produce
No<span>, </span>accounts serve<span> the </span>purpose<span> that their owners choose. They do not have the same function.
>>>Accounts are f</span><span>inancial records of an organization that register all financial transactions, and must be kept at its principal office or place of </span>business<span>.
In accounting, it means </span><span>the chronological </span>record<span> of </span>changes<span> in the </span>value<span> of an </span>entity's assets<span>, </span>liabilities<span>, and the </span>owners' equity<span>
In banking,it means c</span>ontinuing financial relationship<span> between a </span>bank<span> and a </span>customer<span>,whereby </span>deposits<span> and </span>debts<span> are </span>held<span> and processed within a </span>framework<span> of </span>established rules<span> and </span>procedures.<span>
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