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3 years ago

Complete the steps in the measurement of external transactions.

Business

1 answer:

ZanzabumX [31]3 years ago

5 0

Answer:

November 1 Issue common stock in exchange for $11,000 cash.

Dr Cash 11,000

Cr Common stock 11,000

November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.

Dr Equipment 1,500

Cr Notes payable 1,500

November 4 Purchase supplies for $1,100 on account.

Dr Supplies 1,100

Cr Accounts payable 1,100

November 10 Provide services to customers on account for $7,000.

Dr Accounts receivable 7,000

Cr Service revenue 7,000

November 15 Pay creditors on account, $1,200.

Dr Accounts payable 1,200

Cr cash 1,200

November 20 Pay employees $1,000 for the first half of the month.

Dr Wages expense 1,000

Cr cash 1,000

November 22 Provide services to customers for $9,000 cash.

Dr Cash 9,000

Cr Service revenue 9,000

November 24 Pay $600 on the note from Spartan Corporation.

Dr Notes payable 600

Cr Cash 600

November 26 Collect $5,000 on account from customers.

Dr Cash 5,000

Cr Accounts receivable 5,000

November 28 Pay $1,200 to the local utility company for November gas and electricity.

Dr Utilities expense 1,200

Cr Cash 1,200

November 30 Pay $3,000 rent for November.

Dr Rent expense 3,000

Cr Cash 3,000

Cash Common stock

debit credit debit credit

1,200 5,000

11,000 11,000

1,200 16,000

1,000

9,000

600

5,000

1,200

3,000

19,200

Accounts receivable Supplies

debit credit debit credit

400 500

7,000 1,100

5,000 1,600

2,400

Equipment Accounts Payable

debit credit debit credit

7,400 1,000

1,500 1,100

8,900 1,200

900

Notes Payable Service revenue

debit credit debit credit

2,000 7,000

1,500 9,000

600 16,000

2,900 6,000 closed

Retained Earnings Wages expense

debit credit debit credit

1,500 1,000

10,800 closed 1,000

12,300

Utilities expense Rent expense

debit credit debit credit

1,200 3,000

closed 1,200 closed 3,000

net income for the month = $16,000 - $5,200 = $10,800, so retained earnings should increase by $10,800

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Your company, which has a MARR of 12%, is considering the following two investment alternatives:

mote1985 [20]

Answer:

future worth:

project A 11,615.26

project B 12,139.18‬

It should choose project B as their future value is greater

IRR of project A: 13.54%

We should remember that the IRR is the rate at which the net value is zero thus, equals the inflow with the cash outlay

It is calculate with excel or financial calculator due to the complex of the formula.

Explanation:

Project A

We calculate the future value of the cash flow per year and cost as we are asked for future value. The salvage value is already at the end of the project life so we don't adjust it.

Revenues future value

$C \times \frac{(1+r)^{time} -1}{rate} = FV\\$

C 15,000

time 8

rate 0.12

$15000 \times \frac{(1+0.12)^{8} -1}{0.12} = FV\\$

FV $184,495.3970

Expenses future value

$C \times \frac{(1+r)^{time} -1}{rate} = FV\\$

C 3,000

time 10

rate 0.12

$3000 \times \frac{(1+0.12)^{10} -1}{0.12} = FV\\$

FV $52,646.2052

Cost future value

$Principal \: (1+ r)^{time} = Amount$

Principal 40,000.00

time 10.00

rate 0.12000

$40000 \: (1+ 0.12)^{10} = Amount$

Amount 124,233.93

Net future worth:

-124,233.93 cost - 52,646.21 expenses + 184,495.40 revenues + 4,000 salvage value

future worth 11,615.26

Project B

cost:

$Principal \: (1+ r)^{time} = Amount$

Principal 60,000.00

time 10.00

rate 0.12000

$60000 \: (1+ 0.12)^{10} = Amount$

Amount 186,350.89

expenses 52,646.21 (same as previous)

revenues

$C \times \frac{(1+r)^{time} }{rate} = FV\\$

C 24,000

time 7

rate 0.12

$24000 \times \frac{(1+0.12)^{7} -1}{0.12} = FV\\$

FV $242,136.2815

TOTAL

242,136.28 + 9,000 - 52,646.21 - 186,350.89 = 12,139.18‬

Internal rate of return of project A

we write the time and cash flow for each period.

Time Cash flow

0 -40,000

1 -3,000

2 -3,000

3 12,000

4 12,000

5 12,000

6 12,000

7 12,000

8 12,000

9 12,000

10 16,000

IRR 13.54%

Then we write on excel the function =IRR(select the cashflow)

and we got the IRR of the project

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3 years ago

A business owner paid cash for employee wages. This activity would be reported on the Statement of Cash Flows as a.as a subtract

vodka [1.7K]

Answer:

bygg gg

Explanation:

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3 years ago

The current exchange rate between U.S. Dollar and Euro is $1.355/.738. It means that:______a. one Euro can buy 0.738 Dollars.b.

Verdich [7]

Answer:

b. one Dollar can buy 0.738 Euros

Explanation:

Given that

The Current Exchange rate is

= $1.335 ÷ 0.738 Euro

The 0.738 represents the indirect exchange rate now transform it into direct exchange rate

Direct Exchange rate is

= $1 ÷ 0.738 Euro

= $1.3550

Now bid price for purchase one euro is $1.335 and ask price to purchase one euro is $1.355

But the person could purchased at ask price only

Therefore the option b is correct

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3 years ago

BE16.11 (LO 4) Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba issued 30,00

Butoxors [25]

Answer

1) Issued for Cash

Weighted Average number of shares at year end 330,000

b) Issued for Dividends

weighted Average number is 320,000

Explanation:

The Weighted average number (assuming year end is 31 December)

300000 * 12/12 = 300000 full year

30000 = 30000

issued for dividends

Weighted average number

300000 * 12/12 = 300000 full year

30000 * 8/12 = 20000

total at year end 320000 shares

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3 years ago

The Fraser Hill Inn 3 a charming Bed & Breakfast localed in Fraser Hill, Pahang outside of Kuala Lumpur. Fraser Hill is well

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Answer:

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2 years ago

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