Which of the following is NOT be a warning sign of a scam when buying a car or other big purchases?

On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its delivery vans. In addition, Garcia pa

Ksju [112]

Answer with its Explanation:

On February 14, the repairment of transmission is the repair and maintenance cost and hence it must be accounted for as an expense.

The Double entry would be:

Dr Repairs and Maintenance Expense $2,300

Cr Cash $2,300

On the same date, the installation of GPS system is an addition of an asset in the delivery truck hence it must be capitalized.

The Double entry would be:

Dr Delivery Van $450

Cr Cash $450

4 0

3 years ago

Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: The semiannual divi

damaskus [11]

Answer:

(a) Annual dividend = Dividend rate × par value × number of shares outstanding

= 7% × $60 × 40,000

= $168,000

Semi‑annual dividend = $\frac{Annual\ dividend}{2}$

= $\frac{168,000}{2}$

= $84,000

(b) Annual dividend = Dividend rate × number of shares outstanding

= $5.20 × 171,600

= $892,320

Arrears of $892,320 are owed for last year as well, so the total dividends owed would be:

$892,320 × 2 years

= $1,784,640

(c) Annual dividend = Dividend rate × stated value × number of shares outstanding

= 4.8% × $100 × 445,000

= $2,136,000

Quarterly dividend = = $\frac{Annual\ dividend}{2}$

= $\frac{2,136,000}{4}$

= $534,000

8 0

4 years ago

Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money? A. 6 percent inter

Zepler [3.9K]

Answer:

D. 8 percent interest for 9 years

Explanation:

We would use the formula future value formula below to determine which of the investment options would double her money:

FV=PV*(1+r)^n

PV is the amount invested which is $1000

r is the interest rate expected to be earned while n is the number of years First option:

FV=$1000*(1+6%)^3

FV=$1,191.02

Second option:

FV=$1000*(1+12%)^5

FV=$1,762.34

Third option:

FV=$1000*(1+7%)^9

FV=$ 1,838.46

Fourth option:

FV=$1000*(1+8%)^9

FV=$2000

Last option:

FV=$1000*(1+6%)^10

FV=$ 1,790.85

8 0

4 years ago

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed

zvonat [6]

Answer:

Part 1) Compute the break even point in units.

break even point in units = 3,000 units

Part 2) New break-even point be if fixed costs increase by 10 percent

break even point in units = 3,300 units

Part 3) Company net income for the prior year

Net Income = 2,990,000

Part 4) Break even point be if the price is changed

break even point in units = 4,875 units

Explanation:

Part 1) Compute the break even point in units.

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000/3100-1800

= 3,000 units

Part 2) New break-even point be if fixed costs increase by 10 percent

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000×1.10/3100-1800

= 3,300 units

Part 3) Company net income for the prior year

Net Income = Contribution - Fixed Cost

= 5300×(3100p-1800p)-3900000

= 2990000

Part 4) Break even point be if the price is changed

break even point in units = Fixed Cost / Contribution per unit

= 3,900,000/2600-1800

= 4,875 units

8 0

3 years ago

Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig

borishaifa [10]

Answer:

$400 .Since inventory is valued at cost or market value(current replacement cost) whichever is lower .

Therefore value of inventory : $400*8=$3200

Explanation:

8 0

4 years ago

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