Answer:
A. Forecast for July = 42.
B. Forecast for August = 42.45
C. Because of seasonality in the banking industry.
Explanation:
A. Forecast for July = Forecast for June + Smoothing constant x (Forecasting error)
= 42 + 0.15 (42-42) = 42
B. Forecast for August = Forecast for July + 0.15 (Forecasting error)
= 42 + 0.15 (45-42) = 42.45
C. Because there is a great deal of seasonality in the processing requirements of banking industry, this forecasting method (exponential smoothing) might not be appropriate for this situation.
Answer:
Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States. Formal tax legislation follows specific steps as defined by the U.S. Constitution.
Explanation:
Answer and Explanation:
The journal entries are shown below:
1. On Sep 30
Cash $15750
To Sales $15,000
To Sales taxes payable ($15000 ×5%) $750
(Being the cash receipts is recorded)
For recording this we debited the cash as it increased the assets and credited the sales and sales tax payable as it increased the revenue and liabilities
2 On Sep 30
Cost of goods sold $12,000
To Merchandise inventory $12,000
(Being the cost of goods sold is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the merchandise inventory as it reduced the assets
3 On Oct 15
Sales taxes payable $750
To Cash $750
(Being cash paid is recorded)
For recording this we debited the sales tax payable as it reduced the liabilities and credited the cash as it decreased the assets
Answer:
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
Dr Investment in Nursery supplies $7 million
Cr Investment Revenue $7 million
Dr Cash $9 million
Cr Investment in Nursery supplies $9 million
No Entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
(To record purchase of 25% shares for $66 million)
Dr Investment in Nursery supplies ($28 million x 25%) $7 million
Cr Investment Revenue $7 million
(To record investor share of investee's net income)
Dr Cash (18 million shares x 25% share x $2 per share) $9 million
Cr Investment in Nursery supplies $9 million
(To record receipt of dividend)
No Entry
