Answer:
Debit Cash account $8,400
Credit Sales account $8,000
Credit Sales tax payable $400
Being entries to record cash proceeds from sale.
Explanation:
Since total cash received from the sale was $8,400, a debit entry for this amount is posted to the Cash account.
Of the amount received, $400 is for sales tax. This is a liability to the organization and as such a credit entry for sales tax payable of $400 is recorded until it is remitted.
The balance of $8000 is the actual amount to be recognized as sales.
Answer:
a.Mental budgeting
Explanation:
Mental budgeting refers to the use of one's cognitive abilities to plan for incomes and track down expenditure. It involves the mental separation of economic categories of income and expenses. A household practicing mental budgeting does not make written plans for its expected revenues or how its income will be spent.
Mental budgeting is applicable where income is low, or the amount being budgeted for is little. The figures involved can be memorized easily, and the budget lines are few.
When the budget amount is huge, mental budgeting can lead to over or under consumption. Confusion is likely to occur, such that a that a firm or individual may borrow and save simultaneously.
Answer:
1. Ellen would only be able to recover the $500,000 insurance proceed if she should be able to find a technicality in the insurance company's rules and regulation. <em>This is because, strictly following the rules, there is nothing she can do regarding to the claim.</em>
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2. It is not ethical for the insurance company to deny the claim of Ellen on the basis of technicality but when viewed from another perspective, they are strictly following the rules of the insurance organization and applying it to the later.<em> It is now left for the claimant to find another technicality on why he or she must be paid the insurance claim.</em>
Explanation:
Answer:
The correct answer is letter "C": The adjusting entry for deferred revenues increases revenues and decreases liabilities
Explanation:
Deferred Revenue is accrued payments that a corporation collects for goods or services that it has not yet produced or dispatched. Another term for deferred revenue is unearned revenue. Whereas normal payments for goods or services are recorded as revenue on the company's Income Statement, deferred revenue is recorded as a liability until the product is shipped.
For accounting purposes, <em>the adjusting entry for the deferred revenue by increasing an asset account (cash) with a debit and by increasing a liability account (unearned revenue) with a credit.</em>
If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>
Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.
Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.
Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.
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