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nataly862011 [7]
3 years ago
11

Karim Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% inter

est per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) are:
July August September
Cash receipts $ 20,000 $ 26,000 $ 40,000
Cash disbursements 28,000 30,000 22,000
Business
1 answer:
Arisa [49]3 years ago
3 0

Answer:

                                                   July               August              Sept.

Beginning cash balance        $8,400            $8,000           $8,000

Cash receipts                       $20,000          $26,000        $40,000

Cash disbursements          ($28,000)        ($30,000)      ($22,000)

Sub-total                                    $400            $4,000         $26,000

Interests                                         $0                ($72)             ($113*)

<u>Loan                                        $7,200            $4,072          ($11,272)</u>

Total                                       $8,000            $8,000           $14,615

*Rounded to the nearest dollar

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A company sold equipment that originally cost $280,000 for $140,000 cash. the accumulated depreciation on the equipment was $140,000. the company should recognize a $0 gain or loss.

The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.

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3 0
2 years ago
During the current fiscal year, jeremiah corp. signed a long-term noncancellable purchase commitment with its primary supplier.
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Answer:

Option A. Debit unrealized holding gain or loss for $400,000 and credit estimated liability on purchase commitment for $400,000.

Explanation:

According to the Accounting Principles losse are always debited and gains are always credited. This means that the notional loss or gain due to the decrease or increase in the value of the contract must be recorded in the current year by debit or credit respectively.

The notional gain or loss at the end of fiscal year, can be calculated by taking the difference of the Agreed value and the current market value of the contract.

The agreed value of the contract is $2,000,000 and the Market Value is $1,600,000, which means that the unrealized losses are $400,000 ($2,000,000 - $1,600,000).

The double entry would be recording the losses of $400,000 due to technologically decrease in the value:

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8 0
3 years ago
The cost of equity is ________. the interest associated with debt the rate of return required by investors to incentivize them t
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If an = 3n - 2 , find a2

Explanation:

If an = 3n - 2 , find a2If an = 3n - 2 , find a2

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3 years ago
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Identifying alternative course of action

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As she gets tired of this line of action she can identify other activities that will better suit her. So when she decides to go home, look for a part time job, and take shorter trips to locations around the world that appeal to her. She is identifying alternative course of action.

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3 years ago
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Answer:

See below

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