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marin [14]
3 years ago
9

Solstice Company determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P. Moore. I

t uses the direct write-off method to record this loss as of October 1. On October 30, P. Moore unexpectedly paid his account in full to Solstice Company. Record Solsticeâs entry(ies) to reflect recovery of this bad debt.
Business
1 answer:
Anton [14]3 years ago
8 0

Answer:

Please see explanation below.

Explanation:

Oct 1

Dr Accounts receivable $50,000

Cr Bad debts expense $50,000

(Accounts receivable is an asset and are debited when it increases, Expenses are credited when they increase)

Oct 30

Dr Cash $50,000

Cr Accounts receivable $50,000

(Cash is debited when it increases because it is an asset while Accounts receivable is also an asset hence credited when it decreases.)

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Cheyenne Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first y
qaws [65]

Answer:

Feb. 1

Debit  : Cash (48,000 x $52)    $2,496,000

Credit : Preferred Stock (48,000 x $50)   $2,400,000

Credit : Paid in excess of Par - Preferred Stock  $96,000

July 1

Debit  : Cash (66,000 x $56)    $3,696,000

Credit : Preferred Stock (66,000 x $50)   $3,300,000

Credit : Paid in excess of Par - Preferred Stock  $396,000

Explanation:

With Par value stocks, any amount paid in excess of par is placed in a reserve - Paid in Excess of Par as shown in the journals above.

5 0
2 years ago
Janet wants to calculate the real growth rate for the US between 2010 and 2011. She has the follow information: real GDP in 2010
Zina [86]

Answer:

The answer is 3.3%

Explanation:

Percentage growth rate is

New figure - Old figure /old figure x 100%

Real GDP in 2011 is $15.5 trillion

Real GDP in 2010 is $15 trillion

So we have $15.5 - $15/$15 x 100%

$0.5/$15 x 100%

0.033 x 100%

3.3% is the growth rate between 2011 and 2010.

Alternatively, new figure - old figure - 1

$15.5/15 - 1

1.033 - 1

0.033

Expressed as a percentage

0.033 x 100%

3.3%

8 0
3 years ago
Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of
labwork [276]

Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

Profit on lease=present value of lease payments-costs

                         =$274149-$156000

                          =$118149

However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

             =$18362.56

Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.

Conclusively, the increase in earnings is $118149+$18362.56

That is $136511.56

                                                                   

5 0
2 years ago
Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates
Svet_ta [14]

Question: What percentage of the variation in overhead costs is explained by the independent variable

Answer: 82.8%

Explanation:

R^{2} = 0.848 (84.8%), the explanation of variation in Y from the X regress

Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours

Answer: $410,000

Explanation:

The equation resulting from this regression analysis is:

Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours

= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH

= 110000 + 5 x 60000 DLH

= 110000 + 300000

= 410000

5 0
2 years ago
Read 2 more answers
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