An accrual refers to an event where the: 31)

Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa

Alina [70]

Solution and Explanation:

Journal entry to record the purchase the bags of insultaion.

Date Particulars Debit Credit

Inventory $6875

accounts payable $6875

(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)

entry to record the payment for shipping

Inventory $320

cash $320

( paid shipping charges for bags to warehouse)

entry for return of the defective bags

accounts payable $275

Inventory $275

( returned defective bags to glassco Inc)

To record the payment for the bags kept by compass.

Accounts payable $6600

cash $6600

( payment for remaining bags to Glassco Inc., )

4 0

3 years ago

Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?

liberstina [14]

Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
hope this helps!

3 0

3 years ago

A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s

alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0

3 years ago

During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and had negative cash flow ge

Anit [1.1K]

Answer:

The firm’s cash flow (CF) due to financing activities in the second year is - $450 million

Explanation:

As we know that,

Net increase in cash = Operating activity - investing activity - financing activity

where,

Net increase in cash = Ending balance of second year - ending balance of first year

= $280 million - $200 million

= $80 million

The other items values would remain the same

Now put these values to the above formula

So, the value would equal to

$80 million = $1,170 million - $640 million + financing activity

$80 million = $530 + financing activity

So, financing activity = $80 million - $530 million

= - $450 million

8 0

3 years ago

How the consumer motivated to purchase product. what are the critaria and decision making

kondor19780726 [428]

Answer:

In plain terms, the consumer motivation is the set of cognitive factors driving a customer's determination to make a single sale. The payment is the ultimate product of a "Purchaser's Process" scheme, a three-stage mechanism consisting of:

1.Awareness.

2.Interest.

Determination

3 0

3 years ago