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3 years ago

A constant debt-to-GDP ratio in a growing economy is consistent with:

1 answer:

5 0

Is consistent with : a continual surplus

Debt-to-GDP ratio represent the ratio between a country's government debt and its GDP. Low debt to GDP ratio indicates an economy which could produce a great amount of goods and service while still able to pay their debt.

If the debt to GDP ratio is constant while the economy is growing, it's mean that that country always has a surplus.

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Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful acco

dezoksy [38]

Answer:

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date Account details and explanations Debit Credit

Accounts receivable 944,000

sales revenue 944,000

Allowance for doubtful accounts 5300

Accounts receivable 5300

Accounts receivable 1800

Allowance for doubtful accounts 1800

cash 1800

Accounts receivable 1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

particulars Amount ($)

beginning balance of accounts receivable 139,000

Add: Net credit sales 944,000

less : Collections 908,000

Write-offs 5,300

Add: Reinstated amount 1800

less: Collections 1800

Ending balance of accounts receivable 169700

particulars Amount ($)

beginning balance of doubtful accounts 11,370

less : Write-offs 5300

Add: Reinstated amount 1800

Ending balance of unadjusted balance 7870

allowance of doubtful accounts

Preparing journal entry to record bad debt

Date Account details and explanations Debit Credit

Bad debt expense ( 169700*8%) - 7870 12789

allowance of doubtful accounts 12789

7 0

3 years ago

In 2018, Wilma Way’s sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 g

kiruha [24]

Answer:

A. $120,000 is subject to self-employment tax

B. Wilma’s 2018 self-employment tax is $16,955

C. Wilma's allowable Section 199A deduction is $21,500

D. The taxable income from her bookstore activity is $107,982

Explanation:

A. The income from normal business activities are eligible for self employment tax, therefore $120,000 is subject to self-employment tax.

B. To calculate Wilma’s 2018 self-employment tax we have to make the following calculation:

Wilma’s 2018 self-employment tax=($120,000×92.35%)×15.30%

Wilma’s 2018 self-employment tax=$16,955

C. Assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property, the computation of Wilma's allowable Section 199A deduction would be as follows:

In this case would be 50% of W2 wage, therefore:

Wilma's allowable Section 199A deduction=$43,000×50%=$21,500

D. The taxable income from her bookstore activity=Gross Income-50%self-employment tax-Wilma's allowable Section 199A deduction

Gross Income=$120,000+$17,000+$960=$137,960

50%self-employment tax=$16,955×50%=$8,478

Wilma's allowable Section 199A deduction=$21,500

Therefore, The taxable income from her bookstore activity= $137,960-$8,478-$21,500=$107,982

7 0

3 years ago

A generic brand of pre-packaged foods would best be marketed to which target market?

KiRa [710]

Answer:

The best answer to your question would be College students on a budgets

Explanation:

4 0

3 years ago

Read 2 more answers

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in

Bezzdna [24]

Answer:

Inventory= $251,540

Explanation:

Giving the following information:

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in the physical count were $25,420 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,520 of goods sold to Alvarez Company for $32,230, f.o.b. destination.

Both the purchase and the sale must be accounted for in inventory. The purchase is FOB shipping point, therefore it is responsibility os Swifty. The sale was made FOB destination, as it is in transit, it is the responsibility of Swifty.

Inventory= 203,600 + 25,420 + 22,520= $251,540

3 0

3 years ago

The following errors took place in journalizing and posting transactions:

kirill115 [55]

Answer: See explanation

Explanation:

The journal entry to correct the errors is given below:

a. Dr Cash $8400

Cr Account receivable $8400

b. Dr Supplies $2500

Cr Office equipment $2500

Dr Supplies $2500

Cr Account Payable $2500

Note that the first entry that's given in (b) above reverses the incorrect entry. On the other hand, the second entry simply records the correct entry.

6 0

3 years ago