Answer:
See the explanation below:
Explanation:
Interest expenses = $6,950 × 3.75% = $261
Cash received = $6,950 - $261 = $6,689
The payment an be in two forms; it can be immediate or delayed. The two are done below:
a. Journal Entries for Immediate payment
Details Dr ($) Cr ($)
Cash 6,689
Card expenses 261
Sales 6,950
b. Journal Entries for delayed payment
When the transaction is carried out, we have:
Details Dr ($) Cr ($)
Account receivables 6,689
Card expenses 261
Sales 6,950
When the payment is received, we have:
Details Dr ($) Cr ($)
Cash 6,689
Account receivables 6,689
It is false that under both accrual-basis and cash-basis accounting, all revenues and expenses are recorded at the same point in time.
<h3>What is accrual-basis accounting?</h3>
- In the world of finance, accrual refers to the process of accumulating interest or various investments together over time.
- When a transaction is documented as having occurred rather than when a payment is made or received, this accounting method is known as accrual accounting.
- According to the matching principle, income and expenses should be recorded in the same period, and this is how the approach operates.
- Any income made or expense incurred for which money has not yet been exchanged requires accruals.
- By including relevant information regarding recently extended short-term credit to consumers and upcoming liabilities owed to lenders, accruals enhance the quality of the information on financial statements.
Learn more about accrual accounting here:
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Phineas Gage lacked self-control due to his accident, which interfered with his ability to keep a job and live independently.
<h3>What is an Accident?</h3>
This refers to the unforeseen incident that leads to an injury or damage, or in extreme cases, loss of life.
Hence, we can see that Phineas Gage lacked self-control due to his accident, which interfered with his ability to keep a job and live independently.
With this in mind, the effect of the accident affected Phineas Gage in more ways than one as he was unable to hold down a job and was still living with others.
Read more about accident here:
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Answer:
Option (A) is correct.
Explanation:
The Journal entry is as follows:
Cash A/c Dr. $400,000
To common stock A/c $160,000
To Paid-in capital in excess of par A/c $240,000
(To record the original sale of the stock)
Workings:
Cash = Number of shares sold × Selling price of each share
= 20,000 × $20
= $400,000
Common stock = Number of shares sold × Par value
= 20,000 × $8
= $160,000
Paid-in capital in excess of par = $400,000 - $160,000
= $240,000
Answer:
General Liability Insurance can protect the company from risk.
<u>Explanation:</u>
- General Liability Insurance is nothing but an insurance policy that provides insurance for business risks.
- Risks that can be caused as a result of Property damage or business injury or the need for medical payment can be protected due to this insurance.
- In the above condition given, we can clearly understand that the company is about to suffer a loss as one of its ware house got damaged due to fire and in this case General liability insurance can sure save that company from facing loss.
