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Fantom [35]
3 years ago
6

Palmona Co. establishes a $250 petty cash fund on January 1. On January 8, the fund shows $145 in cash along with receipts for t

he following expenditures: postage, $43; transportation-in, $14; delivery expenses, $16; and miscellaneous expenses, $32. Palmona uses the perpetual system in accounting for merchandise inventory.
1. Prepare journal entry to (1) establish the fund on January 1.
2. Prepare journal entry to re-imburse it on January 8.
3. Prepare journal entries to both re-imburse the fund and increase it to $300 on January 8, assuming no entry in part 2.
Business
1 answer:
natima [27]3 years ago
3 0

Answer: Please see answer in explanatory column

Explanation:

1) Journal entry to establish the fund on January 1st.

Account                    Debit                      Credit

Petty Cash                $250

Cash                                                            $250

2) journal entry to record re-imbursement   on January 8.

Account                                 Debit                    Credit

Postage expense                $43

Merchandised inventory     $14

Delivery Expense                 $16

miscellaneous expenses,   $32

Cash                                                                    $105

3) journal entries to record reimbursement of  the fund and increment to $300 on January 8

Account                    Debit                      Credit

Petty Cash                $150

Cash                                                           $150

Petty cash increasing to $300, therefore the increased amount

$300- $250= $150

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8 0
3 years ago
Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent. The bonds make semiannual payments. If these bonds
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The annual YTM will be 3.07% if the bonds make semiannual payments and sell for 94 percent of par value.

<u>Given data</u>

Coupon rate (CR) = 5.4%

Current price (B0) = 94%

Assuming maturity value (MV) = 100%

Years to maturity (n) = 15.

<h3>What is the Annual YTM?</h3>

YTM = CR + ((MV − B0)/n) / ((MV + B0)/2)

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2 years ago
What changes has affirmative action brought
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Answer:

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B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.

2. Qualitative analysis:

According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.

Explanation:

Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share.  It shows the value investors have over a stock.  With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future.  This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.

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5 0
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Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

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Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

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$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

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$980000 - $60000 = 920000

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4 years ago
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