Debtors are always helped by inflation. Why?

On July 1, 2020, Marigold Corp. pays $13,200 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal

Juliette [100K]

Answer:

For Marigold

The journal entries on July 1 , 2020 are:

Dr Insurance prepayment $13,200

Cr Cash $13,200

being insurance paid for in advance

The adjusting entry at the close of the year

Dr Insurance expense $2,200

Cr Insurance prepayment $2,200

Being insurance expense incurred in the year

The other party is Kalter insurance not Dobbs Co:

he journal entries on July 1 , 2020 are:

Dr Cash $13,200

Cr Prepaid revenue $13,200

being revenue received in advance

The adjusting entry at the close of the year

Dr Prepaid revenue $2,200

Cr Revenue $2,200

Being recognition earned in the year

Explanation:

Upon the payment of the insurance , the cash account of the paying company is credited and that of the receiving company debited .

The other entry in the paying company is insurance prepayment while that of the receiving company is prepaid revenue .

7 0

4 years ago

Marlena acquired the following new assets during 2017:

Mila [183]

Answer:

(A) Half-year and (D) Half-year

Explanation:

MACRS stands for Modified Accelerated Cost Recovery System and is the most commonly-used tax depreciation method .Without getting into too much detail, MACRS is accelerated depreciation that allows for a larger deduction while the asset is still new. By comparison, straight-line depreciation gives you the same deduction year after year over the asset's useful life. MACRS cannot be used for intangible property, nor can it be used to depreciate. MACRS convention determines the number of months for which you can claim depreciation during a partial year, either when you first placed the asset in service or when you disposed of it. The mid-month convention only applies to residential rental property, nonresidential real property, and railroad grading or tunnel bore. It simply means that you get a half month's worth of depreciation no matter when that asset was placed into (or taken from) service during that month, whether that was at the beginning, middle, or end of the month. The half-year convention works the same way but instead of the month it goes by the year. In other words, you'll get 6 months' depreciation if the asset was placed into service or disposed of during the year, no matter if it was in January or December.

5 0

4 years ago

Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $

Galina-37 [17]

Answer:

Cost of good manufactured= $86550

Explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= 0

Direct materials = beginning inventory + purchase - ending inventory= 58250

Direct labor= 14000

Manufactured overhead=Factory supervisor salary + Depreciation expense Factory building + Indirect materials= 8800 + 3700 + 1800= 14300

Ending work in progress= 0

Cost of good manufactured= 58250 + 14000 + 14300= $86550

6 0

3 years ago

You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end

kicyunya [14]

Answer:

At the end of the sixth year, you will have:

= $8,487.17.

Explanation:

a) Data and Calculations:

Annual savings = $1,000

Interest rate per year = 10%

Period of savings = 6 years

First deposit = today

From an online financial calculator:

N (# of periods) 6

I/Y (Interest per year) 10

PV (Present Value) 0

PMT (Periodic Payment) 1000

Results

FV = $8,487.17

Sum of all periodic payments $6,000.00

Total Interest $2,487.17

8 0

3 years ago

EFT a.means effective funds transfer b.makes it easier to document purchase and sale transactions c.can process certain cash tra

andreyandreev [35.5K]

Answer:

b. makes it easier to document purchase and sale transactions

Explanation:

EFT means Electronic Funds Transfer and it is when money is moved using computer systems between accounts that can be from one or more banks. EFT includes transactions like direct payments, deposits, transfers on ATMs, bill payments using online banking, among others. According to this, the answer is that EFT makes it easier to document purchase and sale transactions because these transactions are made electronically and you always have evidence of the actions made like deposits and transfers and it makes it possible to monitor the purchases and sales made.

The other options are not right because EFT means Electronic Funds Transfer and it doesn't involve cash transactions.

4 0

3 years ago