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adoni [48]
3 years ago
6

Jody borrowed $25,000 from her controlled corporation for six months. She used the funds to pay her daughter's college tuition.

The corporation charged Jody 3% interest. The Federal rate was 4%. Jody earned $3,500 of investment income for the year.
The imputed amount is $: __________.
Business
1 answer:
Thepotemich [5.8K]3 years ago
8 0

Answer: $25,000

Explanation:

Amount borrowed = $25,000

Corporation interest = 3%($25,000)

= 3/100 × $25,000

= $750

Federal rate = 4%($25,000)

= 4/100 × $25,000

= $1,000

Total debt = $(25,000+750+1,000)

= $26,750

Jody earned $3,500 for the year. In six months, Jody'd earn 1/2 of $3,500 = $1,750

This means that $1,750 of Jody's income will go to Jody's controlled corporation account in six month.

The total inputed amount to be paid by Jody = Jody's total debt - Jody's income in six month

= $26,750 - $1,750

=$25,000

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At the beginning of July, CD City has a balance in inventory of $2,450. The following transactions occur during the month of Jul
denpristay [2]

Answer:

CD City

a. Journal Entries, using perpetual inventory system:

July 3:

Debit Inventory $1,350

Credit Accounts Payable (Wholesale Music) $1,350

To record purchase of CDs on account, terms, 2/10, n/30.

July 4:

Debit Freight-in $110

Credit Cash $110

To record cash payment for freight.

July 9:

Debit Accounts Payable (Wholesale Music) $200

Credit Inventory $200

To record return of CDs.

July 11:

Debit Accounts Payable (Wholesale Music) $1,150

Credit Cash Discount $23

Credit Cash $1,127

To record full settlement on account.

July 12:

Debit Accounts Receivable $3,900

Credit Sales $3,900

To record sales of CDs on account.

Debit Cost of Goods Sold $2,050

Credit Inventory $2,050

To record the cost of sales.

July 15:

Debit Cash $3,900

Credit Accounts Receivable $3,900

To record cash receipt from customers.

July 18:

Debit Inventory $2,150

Credit Accounts Payable (Music Supply) $2,150

To record purchase of CDs on account, terms, 2/10, n/30.

July 22:

Debit Cash $3,250

Credit Sales $3,250

To record cash sales.

Debit Cost of Goods Sold $1,550

Credit Inventory $1,550

To record cost of sales.

July 28:

Debit Accounts Payable (Music Supply) $110

Credit Inventory $110

To record return of CDs.

July 30:

Debit Accounts Payable (Music Supply) $2,040

Credit Cash $2,040

To record full settlement.

b. Top Section of Multiple-step Income Statement for the month of July:

Sales                              $7,150

Cost of Goods Sold = ($3,600)

Gross Profit             = $3,550

Explanation:

a) Sales

July 12 =  $3,900

July 22 = $3,250

Total $7,150

b) Inventory

Beginning Balance = $2,450

July 3 purchase    =      1,350

July 9 return         =       -200

July 12 cost of sales  -2,050

July 18 purchase   =     2,150

July 22 cost of sales  -1,550

July 28 return       =        -110

Ending Balance    =  $2,040

c) Cost of Goods Sold

July 12 cost of sales  $2,050

July 22 cost of sales    1,550

Total  $3,600

8 0
3 years ago
Matrix Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
Bad White [126]

Answer:

Check the explanation

Explanation:

Cash flow from operating activities:  

Net income                                                                     $116

Adjustment to reconcile net income to cash basis:  

Depreciation expense ($359+1-347)                              $13

Gain on sale of equipment                                              (14)

Decrease in account receivable (40-39)                         $1

Decrease in inventory (44-43)                                          $1

Increase in account payable (30-26)                               $4

Decrease in accrued liabilities (18-15)                              (3)

Decrease in income tax payable (40-39)                         (1)

Net cash flow from operating activities                           $117

5 0
3 years ago
Where do you pay a bill by credit card when the bill was not entered through the enter bills window?
omeli [17]

To pay the bill by credit card when the bill was not entered through the enter bill window -The pay bill windows on the Home window are used to pay a bill by credit card.

Write check window is used to pay sales tax,payroll taxes and when paying bill track with accounts payable.

Credit cards let you borrow money from a bank below the agreement that you will pay off it by way of your bill's due date or incur interest fees.

A credit card is a kind of credit facility, provided through banks that allow customers to borrow finances inside a pre-authorized credit score restriction. It enables clients to make buy transactions on goods and services.

A credit score card loan works like a personal mortgage from a bank, with cash deposited at once into your financial institution account and repaid in month-to-month installments.

Learn more about credit card here: brainly.com/question/6872962

#SPJ4

4 0
1 year ago
Parts of the retail industry in which a small number of businesses control a large portion of the market represent __________.
solniwko [45]

The answer to your question is "Oligopolies."

An oligopoly is a market form where a market is controlled by a few large sellers or businesses.  The type of market is going to effect the price in one of two ways.  The first possibility is that the few businesses will work together, or collude, in order to establish higher than normal prices.  The second possibility is that there will be fierce competition between the few sellers, which will result in a high level of competition and lower prices.

8 0
3 years ago
A firm has a capital structure with $3 in equity and $3 of debt. The cost of equity capital is 0.17 and the pretax cost of debt
vampirchik [111]

Answer:10.06 %

Explanation:

WACC = (Cost of equity × weight of equity ) + (Cost of debt × weight of debt)

Cost of equity = 0.17

Cost of debt = pretax cost of debt × (1 - tax rate )

0.06 × 0.52 = 0.0312

Weight of debt and equity = $3 / $6 = $0.5

WACC = ( 0.17 × 0.5 ) + (0.52×0.06 × 0.5) = 0.085 + 0.0156 = 0.1006 = 10.06%

4 0
2 years ago
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