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3 years ago

Contra entry is recorded in?

1 answer:

3 0

I hope this is correct! A contra entry is recorded when the debit and credit affect the same parent account and resulting in a net zero effect to the account. These are transactions that are recorded between cash and bank accounts

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For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indic

Molodets [167]

Answer:

Net cash flow from operating activities for Twix $34,000, Dots=$108,800, Skot = $108,000

Explanation:

Twix$ Dots$ Skot$

Net income 4,000 100,000 72,000

Adjustments to reconcile net income

to net cash provided by operations

Depreciation expense 30,000 8,000 24,000

Account receivable increase (decrease) 40,000 20000 -4,000

Inventory increase (decrease) -20,000 -10,000 10,000

Account payable increase (decrease) 24,000 -22,000 14.000

Accrued liabilities increase (decrease) -44,000 12,000 -8,000

Net cash flow from operating activities $34,000 $108,800 $108,000

6 0

3 years ago

Penn Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the begi

Lemur [1.5K]

Answer:

C) underapplied overhead of $5,000

Explanation:

If the Actual Overheads > Applied Overheads, we say overheads are under-applied.

and

If the Applied Overheads < Actual Overheads, we say overheads are over-applied.

where,

Applied Manufacturing Overheads = Predetermined Overhead Rate × Actual Hour

and

Predetermined Overhead Rate = Estimated Overhead ÷ Estimated Total Hours

= $100,000 ÷ 10,000

= $10.00 per direct labor hour

Thus,

Applied Manufacturing Overheads = $10.00 x 10,500 direct labor hours

= $105,000

therefore,

Actual Manufacturing Overheads = $110,000

Applied Manufacturing Overheads = $105,000

Overheads under-applied = $5,000 ( $110,000 - $105,000)

3 0

3 years ago

James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7

sweet-ann [11.9K]

Answer:

Bond Price = $563,333.90007 rounded off to $563,333.90

Bond Price = $502500

Bond Price = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12 = 0.02 or 2%

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02] + 502500 / (1+0.02)^14

Bond Price = $563,333.90007 rounded off to $563,333.90

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12 = 0.03 or 3%

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03] + 502500 / (1+0.03)^14

Bond Price = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12 = 0.0425 or 4.25%

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price = $437232.16025 rounded off to $437232.16

7 0

3 years ago

Which ratio measures how efficiently a firm uses its fixed assets?

dmitriy555 [2]

Answer:

Total Assets Turnover Ratio

3 0

3 years ago

Workers who have the skills to operate machines and who require a minimum amount of training are

HACTEHA [7]

Workers who are known to have skills to operate machines and who only require a minimum amount of training are semiskilled laborers. They are known as semiskilled due to the fact that they work using a bit of skills only, and they don't require to learn the whole aspects of the machine.

4 0

4 years ago