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3 years ago

Bake Co.'s trial balance included the following at December 31, Year 1:

Business

1 answer:

Dafna1 [17]3 years ago

5 1

Answer:

B. $390,000

Explanation:

On December 31, 20X6, Bake's current liabilities equal $390,000. Accounts payable are current; the bonds payable, due in 20X7, will mature in the next 12 months are current (minus the discount on the bonds payable); and the deferred tax liability will reverse in the next 12 months and is also current. ($80,000 + $300,000 - 15,000 + $25,000 = $390,000).

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A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and t

krek1111 [17]

Answer:

An advertising agency

Explanation:

An advertising agency is an agency that dedicates it's business to creating , planing , and managing all aspects of a client's advertising. It also specializes in promotions and marketing for its client.

Advertising can be carried out via websites, online and social campaigns, brochures, catalogs, direct mail, print ads, radio and TV commercials, and sales letters.

An advantage of an Advertisement agency is that it helps provide a creative environment that combines interesting activities with work, and great exposure too

6 0

3 years ago

Consider an economy described by the following equations:

Ede4ka [16]

Answer:

a. exchange rate = 1

b. exchange rate = 1.5

Explanation:

(a) National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1000 = 0

National saving = 750 + 0

= 750

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1000 - 750 = 0

Thus Trade Balance = 0

NX = 0 => NX = 500 – 500e = 0

=> e = 1

Thus exchange rate = 1

(b)

National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1250 = -250

National saving = 750 - 250

= 500

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1250 - 750 = -250

Thus Trade Balance = -250

NX = -250 => NX = 500 – 500e = -250

=> e = 750/500 = 1.5

Thus exchange rate = 1.5

8 0

3 years ago

Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week fo

aksik [14]

Answer:

Nanny's Portion of Social Security is $442.68

Ann's Portion of Social Security Tax is $442.68

Nanny's Portion of Medicare Tax is $103.53

Ann's Portion of Medicare Tax is $103.53

Explanation:

As explained by the Internal Revenue Service (IRS) under "Topic No. 751 Social Security and Medicare Withholding Rates", the social security tax rate are 6.2 percent for the employer and 6.2 percent for the employee, while the Medicare rate for employee is 1.45 percent and it is also 1.45 percent for the employer. In addition, the wage base limit for 2020 social security tax is $137,700.

Base on the above, we proceed as follows:

Step 2: Calculation total salary of nanny

Total salary of nanny = weekly rate × number of weeks worked

= $170 × 42

= $7,140

Step 2: Calculation of social security tax

Since the nanny's salary is below the wage base limit of $137,700, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Social Security Tax = $7,140 × 6.2% = $442.68

Ann's Portion of Social Security Tax = $7,140 × 6.2% = $442.68

Step 3: Calculation of Medicare tax

Since there is no wage base limit for Medicare tax, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Medicare Tax = $7,140 × 1.45% = $103.53

Ann's Portion of Medicare Tax = $7,140 × 1.45% = $103.53

6 0

4 years ago

Blossom Company had the following transactions. 1. Sold land (cost $8,400) for $10,500. 2. Issued common stock at par for $22,20

harkovskaia [24]

Answer:

Item 1

Debit : Cash $10,500

Credit : Land $8,400

Credit : Profit and Loss $2,100

Item 2

Debit : Cash $22,200

Credit : Common Stock $22,200

Item 3

Debit : Depreciation Expense $12,200

Credit : Accumulated Depreciation $12,200

Item 4

Debit : Salaries Expense $7,400

Credit : Cash $7,400

Item 5

Debit : Equipment $8,100

Credit : Common Stock $1,000

Credit : Common Stock Paid in Excess of Par $7,100

Item 6

Debit : Cash $1,656

Debit ; Accumulated Depreciation $9,660

Debit : Profit and Loss $2,484

Credit : Cost $13,800

Explanation :

See the entries prepared above.

Note on Sale of Assets :

When a sale of asset is made, derecognize the cost of asset, derecognize the accumulated depreciation, recognize the profit or loss on sale and finally recognize the cash receipts.

7 0

3 years ago

A company issued 6-year, 8% bonds with a par value of $750,000. The market rate when the bonds were issued was 7.5%. The company

balandron [24]

Answer:

$28,406.25

Explanation:

Calculation for how much is the amount of interest expense for the first semiannual interest period Using the effective interest method

Interest expense=$757,500 x .075 x ½ year

Interest expense= $28,406.25

Therefore the amount of interest expense for the first semiannual interest period is $28,406.25

7 0

3 years ago