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3 years ago

On November 1, Year 1 Cove Company borrowed $7,000 cash from Shelter Company. The one-year note carried a 7% rate of interest.

Business

1 answer:

PSYCHO15rus [73]3 years ago

5 0

Answer:

Assets + 7,000

Liabilities +7,000

Net income no effect

Cash flow statement:

+7,000 from financing activities

Explanation:

The loan will not generate no expense as the note has not accrued interest yet.

Then, cash from financing activities will increase by 7,000 as the firm received cash

Finally, the blaance sheet will disclosure the increasein assets (cash) and the increasein liabilities (note payable)

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Airline Accessories has the following current assets: cash, $93 million; receivables, $85 million; inventory, $173 million; and

prohojiy [21]

Answer:

See below

Explanation:

1. The current ratio is the sum of current assets divided by current liabilities. It used to measure the ability of the airlines accessories to meet its short term obligation due within a year

Current ratio = $93 million + $85 million + $9 million / $80 million + $26 million

Current ratio = $187 million / $106 million

Current ratio = 1.76:1

Current ratio = 1.76 times

2. Acid test ratio. This measure liquidity but with adjustment for risky current assets i.e Inventory

Acid test ratio = Current assets - Inventories / Current liabilities

Acid test ratio = ($187 million - $173 million) / $106 million

Acid test ratio = $14 million / $106 million

Acid test ratio = 0.13:1

Acid test ratio = 0.13 times

6 0

3 years ago

Embree Corp. purchased a four-year insurance policy on May 1, Year 2, for $12,000, effective immediately. The company expensed t

BlackZzzverrR [31]

Answer:

a. Debit to Prepaid Insurance of $10,000

* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.

Explanation:

Insurance purchased for four years was actually prepaid insurance on May 1, Year 2.

The company expensed all amount by positing following entry ( which is a wrong entry)

DR. Insurance Expense $12,000

Cr. Cash $12,000

It should be entered as follow:

DR. Prepaid Insurance $12,000

Cr. Cash $12,000

At the end of the year 2 8 months has been passed for which $2,000 is accrued and it will be recorded, as all the amount is charged to the expense account we will adjusted the remaining amount of $10,000 to correct this mistake.

Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.

DR. Prepaid Insurance $10,000

Cr. Insurance Expense $10,000

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3 years ago

When the media decides to have a "breaking"

Alona [7]

I think it would be impact

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3 years ago

Read 2 more answers

Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exc

AfilCa [17]

Answer:

The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.

We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros

E.G Buy a $1000 from the market for £555(10,000*1/1.8)

After that we can by 28.5(1000/35) ounces of gold from that and sell the gold for £571(20*28.5). This way we make a profit of £16 (571-555) without taking any risk.

Explanation:

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3 years ago

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for CasualDining, Inc., to open as Eat

maksim [4K]

Answer:

Explanation:

Substancial performance is a terminology used in contract law. It actually means the degree of performance of a contract work which is not completely or fully finished,but is so nearly equivalent that it would be unfair to deny the contractor the payment agreed upon in the contract. The owner has a right to recover whatever damages he has incurred by reason of the contractor's failure to render full and complete performance.

Building Restoration must have at least substantially performed the it's side of a bargain before they can call on the CasualDining,Inc to perform the their side of the bargain e.g. by paying an agreed amount. What actually constitute substantial performance depends on the circumstances.

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3 years ago