1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
faust18 [17]
3 years ago
8

Selling and pledging accounts receivable LO C3 On June 30, Petrov Co. has $128,700 of accounts receivable. July 4 Sold $7,245 of

merchandise (that had cost $5,000) to customers on credit. - 9 Sold $20,000 of accounts receivable to Main Bank. Main charges a 4% factoring fee. - 17 Received $5,859 cash from customers in payment on their accounts. - 27 Borrowed $10,000 cash from Main Bank, pledging $12,500 of accounts receivable as security for the loan. Prepare journal entries to record the above selected July transactions. (The company uses the perpetual inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
irakobra [83]3 years ago
4 0

Answer:

Explanation:

The journal entries are shown below:

On July 4:

Accounts receivable A/c Dr $7,245

          To Service revenue A/c $7,245

(Being service provided is recorded)

Cost of goods sold A/c Dr $5,000

           To Merchandise inventory A/c $5,000

(Being inventory sold at cost)

On July 9:

Cash A/c Dr $19,200

Factory fee expense A/c Dr $800

         To Accounts receivable A/c $20,000

(Being payment is received)

On July 17:

Cash A/c Dr  $5,859

         To Accounts receivable A/c  $5,859

(Being cash is received)

On July 27:

Cash A/c Dr  $10,000

   To Notes payable A/c  $10,000

(Being the amount is borrowed)

No journal entry required

You might be interested in
Ivanhoe Company issued $1520000 of 6%, 5-year bonds at 95, which pay interest annually. Assuming straight-line amortization, wha
Mashutka [201]

Answer:

the journal entry to record bond issuance:

Dr Cash 1,444,000

Dr Discount on bonds payable 76,000

    Cr Bonds payable 1,520,000

amortization of discount on bonds payable = $76,000 / 5 = $15,000

coupon payment = $91,200

total interest expense per year = $106,200

total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>

<u />

6 0
2 years ago
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an
sp2606 [1]

Answer:

Neither

Explanation:

The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.

If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.

Neither of the project should be selected because the IRR of both projects is less than their required returns

3 0
3 years ago
Harold, a black man, worked for Alegius Financial Services as a sales representative. On three separate occasions over a period
Mnenie [13.5K]

Answer:

The correct answer is letter "D": Harold will win his case because the employer was aware of the racially harassing behavior, yet no discipline was imposed.

Explanation:

The Equal Employment Opportunity Commission (<em>EEOC</em>) is an agency of the federal government of the United States that enforces laws against race, color, religion, sex, age, or disability discrimination in the workplace. Most employers and unions are covered under EEOC laws.

In Harold's case, the harassment was not specifically against him but there were clear signs of discrimination. However, Alegius Financial Services did not do anything regarding this issue what will result in finding the company liable after Harold sued them.

7 0
3 years ago
A high growth software company will pay its first dividend of S0.30 next year. This dividend of . After that, the growth will $0
bija089 [108]

Answer:

The price of the stock today is $3.49. The right answer is A.

Explanation:

In order to calculate the price of the stock today, we need to calculate first Value after year 5 with the following formula:

Value after year 5=(D5*Growth Rate)/(Required return-Growth Rate)

To find D5 we need to make the following calculations:

IF D1=0.3 , hence D2=(0.3*1.1)=0.33 , D3=(0.33*1.1)=0.363 , D4=(0.363*1.1)=0.3993 and D5=(0.3993*1.1)=0.43923

Therefore, Value after year 5=(0.43923*1.05)/(0.15-0.05) =$4.611915

Therefore, now we can calculate the the price of the stock today with the following formula:

current price=Future dividends and value*Present value of discounting factor(rate%,time period)

=0.3/1.15+0.33/1.15^2+0.363/1.15^3+0.3993/1.15^4+0.43923/1.15^5+$4.611915/1.15^5

=$3.49

3 0
3 years ago
On November 1, year 1, ABC, Inc., received a 3-month, 8%, $1,500 note receivable with interest and principal to be collected on
OverLord2011 [107]

Answer:

The amount of interest revenue that should be recorded for year 1 is $20.

Explanation:

  • A note otherwise known as promissory note is an unconditional written promise by a borrower to a lender (payee) to pay a certain agreed sum at a specific date.
  • The interest revenue on notes receivable is calculated by Principal x Interest rate x Time period
  • In the case of ABC, Inc., the interest revenue to be recorded for year 1 (November 1 - December 31) is calculated as follows: $1,500 x 8%/12 = $10 monthly. For the 2 months, it is $10 x 2 months = $20.
7 0
3 years ago
Other questions:
  • Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $ 840 comma 000 Sale pr
    8·1 answer
  • A bulk mail insurance advertising brochure sent by the insurer to every home in one zip code is an example of:_________.
    14·1 answer
  • Among the advantages of corporations are the ease of raising financial capital, professional management, and
    5·1 answer
  • When a firm is operating in a perfectly competitive labor market the wage the firm increases with the number of workers hired. t
    6·1 answer
  • Usually arise when companies give work groups complete autonomy and responsibility for task completion. continue
    5·1 answer
  • In order to prevail in a lawsuit based upon strict liability in tort for personal injuries resulting from the use of a defective
    14·1 answer
  • The first and most important step in the posting procedure is
    7·1 answer
  • During fiscal year 2019, Magic Kingdom had sales of $2 million. Its cost of goods sold, selling and general administrative expen
    6·1 answer
  • How could you be of help to solve deforestation​
    11·1 answer
  • Click this link to view O*NET's Tasks section for Actors.
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!