A corporation is an independent legal entity owned by shareholders, in which the shareholders decide on how the company is run and who manages it. A partnership is a business in which two or more individuals share ownership.
Answer:
accounts payable 2,000 debit
cash 2,000 credit
salaries expense 1,200 debit
cash 1,200 credit
Equipment 39,000 debit
cash 39,000 credit
utilities expense 800 debit
cash 800 credit
B-Valdez drawins 4,500 debit
cash 4,500 credit
Explanation:
In all cases the company is using cash. It is performing a cash disbursements thus we credited.
In the debit side we post what we receive or destination of the cash.
Like, equipment, salaries expense and so on.
Answer:
$9.26 per stock
Explanation:
using the discounted cash flow model, the value of Scampini Technologies is:
company's value = free cash flow / (required rate of return - growth rate) = $25,000,000 / (13% - 7%) = $25,000,000 / 6% = $416,666,667
since the company does not have any debt, the price of each stock is:
stock price = total value of the company / total outstanding stocks = $416,666,667 / 45 million shares = $9.26 per stock
Answer:
Cash = $3,610,000
Explanation:
Debit: Cash ??
Debit: Bad Debt Expense $410,000
Debit: Accounts Receivables $110,000
Credit: Sales $4,130,000
- Account Receivables for the period = Closing Balance - Opening Balance
Account Receivables for the period = $760,000 - $650,000 = $110,000
- Cash = Credit Sales - Accounts Receivables for the period - Bad Debt Expense
Cash = $4,130,000 - $110,000 - $410,000
Cash = $3,610,000
Answer:
Pretax cost of debt = 7.02%
Aftertax cost of debt is 4.56%
Explanation:
As of today, the time to maturity of this bond is 16-2 = 14 years.
You can solve the pretax cost of debt; YTM using the following inputs in a financial calculator;
Time to maturity; N = 14*2 = 28
Face value; FV = 1000
Semiannual coupon payment ; PMT = (6%/2) *1000 = 30
Price of the bond ; PV = 0.91* 1000 = 910
Compute the semiannual interest rate ; CPT I/Y = 3.510%
Since YTM is an annual rat; multiply 3.510% by 2
Pretax cost of debt = 7.02%
b.) Aftertax cost of debt = pretax cost of debt * (1-tax)
= 7.02% *(1-0.35)
= 4.563%
Therefore, aftertax cost of debt is 4.56%