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sveticcg [70]
3 years ago
14

On July 4, Cullumber's Restaurant accepts a Visa card for a $1,350 dinner bill. Visa charges a 2% service fee. Prepare the entry

on Cullumber’s books related to the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
Thepotemich [5.8K]3 years ago
3 0

Answer:

Journal entry

Explanation:

The journal entry is as follows

Cash      $1,323

Service charge expense ($1,350 × 2%) $27

               To    Sales Revenue  $1,350

(Being the cash is recorded)

for recording this transaction we debited the cash and expenses as it increase both balances while at the same time the sales revenue is also increased so it is credited

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Unsolicited email that plagues employees at all levels and clogs email systems is also known as spam. Spam emails are typically flooding everyone within the organization, with the same message and is usually something one would not choose to receive. The majority of spam emails that are sent out are commercial advertising which takes time away from receiving other necessary emails. 
4 0
3 years ago
Given the following information: Percent of capital structure: Preferred stock 10 % Common equity (retained earnings) 40 Debt 50
sasho [114]

Answer: 8.23%

Explanation:

Firstly, we will calculate the cost of debt which will be:

= Yield (1-Tax rate)

= 9% × (1-0.34)

= 9% × 0.66

= 5.94%

Then, the Cmcost of preferred stock will be:

= 7/(104-9.40)

= 7/(94.6)

= 7.39%

We will also get the value of the cost of equity which will be:

= (Dividend expected common/Price common) + growth rate

= (2.50/76) + 8%

= 3.29% + 8%

= 11.29%

For Debt:

Cost after tax: 5.94

Weight = 50%

Weighted cost = 5.94 × 50% = 2.97

For Preferred stock:

Cost after tax: 7.39

Weight = 1%

Weighted cost = 7.39 × 10% = 0.74

For Common equity

Cost after tax: 11.29

Weight = 40%

Weighted cost = 11.29 × 40% = 4.52

Weighted average cost of capital = 2.97 + 0.74 + 4.52 = 8.23%

8 0
2 years ago
Tobang Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere b
Alex787 [66]

Answer:

The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.

At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.

Explanation:

3 0
3 years ago
How does gross domestic product (GDP) differ from gross national income (GNI)?
bazaltina [42]
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6 0
2 years ago
Read 2 more answers
If cost of goods manufactured is $306,790, beginning work in process inventory, $25,000, and cost to manufacture, $300,000, the
Phantasy [73]
Manufacturing overhead is consists of indirect materials, indirect labor, and other indirect costs. To solve the problem, a portion of manufacturing income statement looks like this:

Direct material -----------------------$90,000
Direct labor ---------------------------$140,000
Manufacturing overhead--------________
Total cost to manufacture         $300,000
Add: Work in process, beg       $  25,000
Less: Work in process, end      $     18,210
Cost of goods manufactures---$ 306,790

So, to solve the (?) in the above format, manufacturing overhead (MO) is derived as follows:

MO = Cost to manufacture - prime cost 
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      = $70,000

Thus, manufacturing overhead is $70,000.

8 0
3 years ago
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