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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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Anthony is deciding between different saving accounts at his bank.he has four options,based on how frequently interest compounds

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The appropriate response is Daily Compounding. Progressive accrual is the expansion important to the key total of an advance or store, or as it were, enthusiasm on intrigue. It is the aftereffect of reinvesting premium, instead of paying it out, so that enthusiasm for the following time frame is then earned on the chief total in addition to the already gathered premium.

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3 years ago

What is the impact on the accounting equation when an accounts receivable is collected?

Alinara [238K]

DONT TRUST THAT LINK! IT IS USED TO STEAL PERSONAL INFORMATION! Report any links people give you.

Answer for your question!

Because one asset increases and another decreases by the same amount, the accounting equation remains unchanged and in balance, suggests Principles of Accounting. For example, if you collect $100 from an account receivable, cash increases by $100 and accounts receivable decreases by $100.

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3 years ago

Considering contributing $1,000 to their church. This contribution will bring their total itemized deductions to $2,000. Assumin

mafiozo [28]

Answer:

b. $150

Explanation:

Standard deduction refers to deduction available to an individual at a flat rate say 30%.Whereas in itemized deductions, an individual can claim deductions at different rates on different items.

Usually itemized deductions are more beneficial to an individual and in case tax saving in these cases exceeds total standard deductions, itemized deductions should be preferred.

In the given case, contribution of $1000 to church shall amount to a deduction. Since the tax rate applicable to the individual is 15%, the savings in tax shall amount to 15% of $1000 i.e $150.

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3 years ago

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective,

77julia77 [94]

Answer:

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective, yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.

Mental accounting

Explanation:

Mental accounting is the concept with which the management sciences explain the mental processes in which people perform categorization, evaluation, and coding of economics. It was proposed by Richard Thaler and suggests that people can perform it with easiness when they manage the accounting of their finance in their minds.

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3 years ago

Sally is in the business of purchasing accounts receivable. Last year, Sally purchased an account receivable with a face value o

marusya05 [52]

Answer:

Sally’s basis in the Account Receivable is $60,000

She has a bad debt deduction of $0. There is no Bad debt deduction for Sally. Rather she made a profit on the transaction.

Explanation:

The Account Receivable can be defined as a Debt Instruments. Debt instruments in accounting are valued at Lower of Cost or Net Realizable Value.

Cost is the amount of cash or its equivalent that was expended to obtain an asset. The cost of this Account Receivable therefore is 60,000

Net realizable value (NRV) is the value that can be realized from the sale of an asset. Net Realizable value of the Account Receivable therefore is 80,000.

Therefore the value to be utilized as the value of the Account Receivable 60,000.

Below is the accounting entries to record the transaction and recognized profit.

For the Face Value of the Debt

Debit: Account Receivable Account(Debtors) 60,000.00

Credit: Account Receivable Purchase Account 60,000.00

For the payment of the A/R

Debit: Account Receivable Purchase Account 60,000.00

Credit: Bank 60,000.00

For the settlement received on the A/R

Debit: Bank 65,000.00

Credit: Account Receivable Account(Debtors) 60,000.00

Credit: Profit & Loss 5,000.00

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3 years ago