Answer:
When a company makes an end-of-year adjusting entry which includes a debit to Supplies Expense to account for supplies used during the period, which account is credited? The answer would be deferred asset amortization adjustment
Explanation:
The first step to take when completing the accounting procedures at the end of the year for a small business is to account for any necessary financial adjustments. Throughout the year, revenues are collected and expenses are deducted. However, the amount of certain financial transactions may differ from the moment they were made. Adjustments also have to be made for paid accounts. If the interest has been paid in monies held in a corporate savings account, it must be added to the ledger. Alternatively, if interest has been charged on credit card purchases, these transactions also have to be entered in the spreadsheet.
Deferred asset depreciation is not subject to the useful life of the concept, but will generally be amortized as assets are consumed or spent, then the depreciation can be done a few months or in several years, depending on the reality of each company and of each cost or expense.
However, as regards deferred charges, the standard has considered some guidelines to consider when paying off
Answer: Options (A), (C) and (D) are correct
Explanation:
Yield to maturity ,is referred to as or known as theoretical IRR or internal rate of return that is earned by a person or investor who tends to buy that bond at the respective market price, also assuming the bond is enclosed till maturity, and further knowing that coupon and other principal payments are to be made on the schedule. YTM is referred to as or known as discount rate on which sum of future cash flow tends to be equal to current price of bond.
Answer:
8.5
Explanation:
Account receivable turnover is calculated by dividing the net credit sales by the average of account receivable .
Net sales $569,000
Account receivable $91,000
Account receivable - $43000
Average account receivables = (91000+43000)/2= $67,000
Account receivable turnover = 569000/67000 =8.5
Answer:
A journal entry was carried out for Moonlight Company for January 21, 2019, and is shown below in the explanation section
Explanation:
Solution
Given that:
Moonlight Company Journal Entries on January 21, 2019
JOURNAL ENTRY
Date Account name Debit Credit
Jan. 21, 2019 Cash 500
(Income statement -Bad debts recovered) 500
(record the bad debts recovery from customer X)
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.2)1 = $2.40
D2= Do(1+g)2 = $2(1+0.2)2 = $2.88
D3= Do(1+g)3 = $2(1+0.2)3 = $3.456
D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472
D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5
V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5
V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742
V1 = $11.3824
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n
V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5
V2 = $5.0762/0.1435
V2 = $35.3742
Po = V1 + V2
Po = $11.3824 + $35.3742
Po = $46.76
Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.
In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.
