Explanation:
The journal entries are as follows
On December 31
Bad debt expense Dr $4,115 ($823,000 × 0.50%)
To Allowance for doubtful debts $4,115
(Being the bad debt expense is recorded)
On Feb 01
Allowance for doubtful debts Dr $412
To Account receivable $412
(Being the uncollectible amount is recorded)
On June 5
Account receivable $412
To Allowance for doubtful debts Dr $412
(Being the uncollectible amount is recorded)
On June 5
Cash Dr $412
To Account receivable $412
(Being the cash received is recorded)
Answer:
making loans
Explanation:
Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc
Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans
Hence, the first option is correct
Answer:
$23.6 per share
Explanation:
Given that,
Total common equity = $5,500,000
Shares outstanding = 250,000
Net income = $525,000
Dividends paid out = $125,000
Total value at the end:
= Total common equity + Net income - Dividends paid out
= $5,500,000 + $525,000 - $125,000
= $5,900,000
Therefore,
Book value per share at 2014 year end:
= Total value at the end ÷ No. of shares outstanding
= $5,900,000 ÷ 250,000
= $23.6 per share
Answer:
e. None of the above
Explanation:
The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.
If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.
In case of taxable asset purchases, the tax credits or the net operating losses cannot be transferred from the target firm to the acquiring firm.