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avanturin [10]
3 years ago
13

The Blue Hydrangea Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 7 comma 700 for s

even months of advertising. How much advertising expense should Blue Hydrangea Law Firm record for the two months ending February 28 under the a. cash​ basis?
Business
1 answer:
Ivahew [28]3 years ago
6 0

Answer:

$7,700

Explanation:

There are two basis of accounting. These are the cash and accrual basis. In the cash basis of accounting, expenses are full recognized only when cash has been paid.

Hence unlike in the accrual basis where the payment or non payment results in the recognition of the expense once it has been incurred (and a corresponding asset or liability in form of prepayments and accrued expense), expenses under the cash basis of account would always result in a debit to expense and a credit to cash.

As such, if On January​ 1, the law firm paid $ 7 comma 700 for seven months of advertising, this will be recognized as the expense for the two months ending February 28 under the cash basis.

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In 2007, Wagner Associates appropriated $65,000 of retained earnings to satisfy the restrictive covenant of a loan agreement. Wh
Dmitry [639]

Answer:

The financial statements effects of the appropriation are as follows:

a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.

b) Cash balance will also reduce by $65,000 in the Balance Sheet.

Explanation:

Normally, partnerships can distribute or appropriate their profits according to their partnership agreements.  However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners.  The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.

Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants.  Some restrictive covenants may specify the minimum cash balance to maintain.  Restrictive covenants, generally, remain measures to overcome unwanted business outcomes.  It is a form of insurance against loan repayments.

8 0
3 years ago
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The best supplier will depend on the type of business. Explain how a business that specializes in supplying plumbers would have
IgorLugansk [536]

Answer:

the $$$ of the different thing will play a big part

7 0
3 years ago
Martin Inc. began construction on a building in 2020 and paying a construction company $600,000 in 2020. Martin also had avoidab
Mandarinka [93]

Answer:

$1,000,00

Explanation:

Amount paid to Construction company = $600,000

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So, amount to be capitalized in Martin's Building account = $600,000 + $90,000 + $180,000 + $36,000 + $64,000 + $30,000 = $1,000,000

7 0
2 years ago
When the workers in a workshop encounter operating difficulties or breakdowns while handling their machinery, they seek the help
omeli [17]

Answer:

D. Technical problem solver.

Explanation:

A leader or a manager acts as a technical problem solver in the place where they make and implements decisions that will solve the problem faced by his subordinate at different levels or process of carrying out their duties  

As a technical problem solver,  managers performs individual contributor tasks on a regular basis, such as  repairing machinery.

5 0
3 years ago
The 2018 financial statements of BNSF Railway Company report total revenues of $19,548 million, accounts receivable of $1,189 mi
Vitek1552 [10]

Answer:

D) 18.2 times

Explanation:

The accounts receivable turnover is determined by dividing the total credit revenues by the average receivables.

The average receivables is the sum of the opening and closing receivable balances divided by 2.

The average receivables is  ( $ 1,189 + $ 955) / 2 =  $ 1,072

The total revenues in the absence of other information is considered as credit sales.

Average receivables turnover      = $ 19,548  /  $ 1,072  = 18.24 times    

3 0
3 years ago
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