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3 years ago

Following are the transactions of Sustain Company.

Business

1 answer:

MrMuchimi3 years ago

8 0

Answer:

Jun-01

Dr Cash 18,500

Cr Common Stock T. James 18,500

Jun-02

Dr Furniture 11,500

Cr Account Payable 11,500

Jun-03

Dr Prepaid Insurance 2,100

Cr Cash 2,100

Jun-04

Dr Account Receivable 10,500

Cr Sales 10,500

Jun-12

Dr Account Payable 11,500

Cr Cash 11,500

Jun-20

Dr Cash 10,500

Cr Account Receivable 10,500

Jun-21

Dr Cash 17,500

Cr Common Stock T. James 17,500

Jun-30

Dr Cash 12,500

Cr Unearned Income 12,500

Explanation:

Preparation of Journal entries

Jun-01

Dr Cash 18,500

Cr Common Stock T. James 18,500

(Invested $18,500 as capital contribution)

Jun-02

Dr Furniture 11,500

Cr Account Payable 11,500

(Purchased furniture on credit)

Jun-03

Dr Prepaid Insurance 2,100

Cr Cash 2,100

(Cash Paid for 12 month insurance)

Jun-04

Dr Account Receivable 10,500

Cr Sales 10,500

(Billed customer )

Jun-12

Dr Account Payable 11,500

Cr Cash 11,500

(Cash paid to reclaimed wood)

Jun-20

Dr Cash 10,500

Cr Account Receivable 10,500

(Cash collected form customer)

Jun-21

Dr Cash 17,500

Cr Common Stock T. James 17,500

(Addition capital contribution)

Jun-30

Dr Cash 12,500

Cr Unearned Income 12,500

(Received advance for service to be performed)

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In certain economy pple save part income in financial sector and use remaining part for consumption the govt decides to increse

notsponge [240]

Answer: Savings decrease, and investment decreases

Explanation:

A tax is referred to as a levy which is imposed on the people in a particular country so that the government can generate revenue.

When there's an increase in the tax rate, it simply means that the government wants to generate more money. This will have an effect on the consumption, savings and investment of the individuals in the economy as their savings will be reduced, consumption reduces and investment reduces as well.

7 0

3 years ago

Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute

Brut [27]

Explanation:

$\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50$

$\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\
\text { Growth rate,g }=4 % \\
\text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\ =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\
=0.086956522+0.04 \\
=0.126956522=12.7 \% \text {(Rounded) }$

12.7%

6 0

3 years ago

Mijka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1

yaroslaw [1]

Answer:

Mijka Company

a. Journal Entries

Debit Cash $30,400

Credit Service Revenue $30,400

To record the proceeds for services provided.

Debit Expenses $13,800

Credit Cash $13,800

To record the payment of cash for services.

Debit Dividend $2,100

Credit Cash $2,100

To record the payment of cash dividend.

b. Income Statement for the year ended December 31, 2018:

Service Revenue $30,400

Expenses 13,800

Net Income $16,600

Dividends (2,100)

Retained earnings $14,500

Statement of Changes in Stockholders' Equity as of December 31, 2018:

Retained Earnings $14,500

Balance Sheet as of December 31, 2018:

Assets:

Cash $14,500

Equity:

Retained Earnings $14,500

Explanation:

a) Data and Calculations:

Cash revenue $30,400

Cash expense (13,800)

Cash dividend (2,100)

Cash balance $14,500

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2 years ago

Interest Practice<br> How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

shusha [124]

Answer:

x1.044 - x

Explanation:

The formula for calculating compound interest is as below

FV = PV × (1+r)^n

where FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

In this case, PV =X, r =4.4% and n=1

FV = x x ( 1+4.4/100)^1

Fv = x x( 1.044)^1

Fv = x1.044

x dollars will earn x1.044 - x

8 0

3 years ago

You are writing a proposal to restructure your department's organizational chart. Your manager was a member of the committee tha

Bess [88]

Answer:

a. the purpose of this proposal is to show how we can reorganize our department to improve our efficiency while keeping intact the values that have allowed us to succeed to this point.

Explanation:

If you are writing a restructuring proposal, it means that you have mapped out points that can be improved in your department. However, the organizational structures of firms can rarely be changed drastically. What are usually applicable are the policies for improving processes, so that they become more and more efficient. This applies in general, but especially if you are going to propose changes to a structure that was designed by a superior of yours, who probably has more experience than you. Thus, you must present a restructuring project that identifies points to be improved, that proposes alternatives for improvement, but that maintains the values policy that was instituted by your manager. In this way, your manager will see your contribution as adding value to the structure and your work will be valued.

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3 years ago