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NISA [10]
3 years ago
6

At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of

$50. The vouchers include: postage, $100; business lunches, $150; delivery fees, $75; and office supplies, $25. Which of the following is not recorded when recognizing expenditures from the petty cash fund?
Business
1 answer:
Oksi-84 [34.3K]3 years ago
7 0

Answer:

Explanation:

The journal entry to record the expenditure account is shown below:

Postage A/c Dr $100

Business lunches A/c Dr $150

Delivery fees A/c Dr $75

Office supplies /c Dr $25

                To  Petty cash A/c $350

(Being expenditure is recorded)

So, the debit petty cash account would not be considered as it is credited while passing the journal entry.

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The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estim
Artyom0805 [142]

Answer:

the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:

cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%

I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.

<em>The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%</em>

<em>Another question: </em>

<em>The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%</em>

5 0
3 years ago
Cash received through the sale of long-term investments would be reported in the statement of cash flows as a a.Cash inflow in t
avanturin [10]

Answer:

b.Cash inflow in the investing activities section.

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The cash flow statement shows the cash used or provided by the various activities of an entity during a given period. These activities are categorized into operating, investing and financing activities.

Non current asset sale and purchases are accounted for in the investing section of the cash flow statement as an inflow and an outflow of cash respectively.

Hence, Cash received through the sale of long-term investments would be reported as Cash inflow in the investing activities section.

4 0
3 years ago
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