Answer:
Explanation:
Purchase discount = $4000 * 2% = $80
Date Accounts title Debit Credit
Dec-15 Accounts Payable $4,000
Purchase Discounts $80
Cash $3,920
(To record payment within discount term of 10 days)
Answer:
$1.78 million
Explanation:
Firm’s projected free cash flow for the year 20X1:
= cash flow from operating activities - capital investment - Common stock dividend - preferred stock dividend
= $12 million - $9.5 million - $0.40 million - $0.32 million
= $1.78 million
Therefore, the firm’s projected free cash flow for the year 20X1 is $1.78 million.
Answer:
Requirement: Prepare the entry to record the sales transactions and related taxes.
1. Date Account Titles and Explanation Debit Credit
Apr. 10 Cash $30,975
Sales Revenue $29,500
Sales Tax Payable $1,475
(To record Cash sales along with sales tax)
2. Date Account Titles and Explanation Debit Credit
Apr. 15 Cash $18,530
Sales Revenue $17,000
Sales Tax Payable $1,530
(To record Cash sales along with sales tax)
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<u>Workings</u>
- Total Sales along with sales tax = $18,530, Sales Tax Rate = 9%. Sales Tax Amount = 18530*(0.09/1.09) = $1,530
- Sales Without Sales Tax = $18,530 - $1,530 = $17,000
Answer:
Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.
Explanation:
He invests some money at 9%, and $1700 less than that amount at 4 %.
Let Nico invest $x at 9%.
It means he invest $( x-1700) at 4%.
The investments produced a total of $257 interest in 1 yr.
Add 68 on both sides.
Divide both sides by 0.13.
Nico invest $2500 at 9% interest rate.
Nico invest $800 at 4% interest rate.
Therefore Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.
