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3 years ago

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:

Business

1 answer:

amm18123 years ago

6 0

Answer:

January 2 Purchase rental space for one year in advance, $6,300 ($525/month).

Dr Prepaid expense 6,300

Cr Cash 6,300

January 9 Purchase additional supplies on account, $3,600.

Dr Supplies 3,600

Cr Accounts payable 3,600

January 13 Provide services to customers on account, $25,600.

Dr Accounts receivable 25,600

Cr Service revenue 25,600

January 17 Receive cash in advance from customers for services to be provided in the future, $3,800.

Dr Cash 3,800

Cr Unearned revenue 3,800

January 20 Pay cash for salaries, $11,600.

Dr Wages expense 11,600

Cr Cash 11,600

January 22 Receive cash on accounts receivable, $24,200.

Dr Cash 24,200

Cr Accounts receivable 24,200

January 29 Pay cash on accounts payable, $4,100.

Dr Accounts payable 4,100

Cr Cash 4,100

<u>adjusting entries:</u>

Rent for the month of January has expired.

Dr Rent expense 525

Cr Prepaid rent 525

Supplies remaining at the end of January total $3,500.

Dr Supplies expense 3,300

Cr Supplies 3,300

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Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4, 2020. His father paid $44 per share

Marina86 [1]

Answer:

$6,000 LTCG

Explanation:

Calculation to determine the amount and character of the gain or loss that Monte recognizes

Using this formula

Recognized gain or loss =Amount realized -Basis

Let plug in the formula

Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)

Recognized gain or loss=$54,000-$48,000

Recognized gain or loss=$6,000 LTCG

Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG

6 0

3 years ago

8. In a car insurance policy, collision insurance covers

prisoha [69]

I am pretty sure that it's d, the cost of your car if it's stolen because its a car insurance

4 0

3 years ago

Read 2 more answers

For fixed-rate bonds it's important to realize that the value of the bond has a(n)-Select relationship to the level of interest

pogonyaev

Answer:

Answer is explained in the explanation section below.

Explanation:

It's necessary to remember that the value of fixed-rate bonds is inversely proportional to the level of interest rates. The value of the bond decreases as interest rates rise; moreover, the value of the bond rises as interest rates fall. A Bond with a lower coupon sells for less than its face value. When the going rate of interest is higher than the coupon rate, this condition arises. The value of the asset would increase over time. A higher coupon bond is one that sells for a higher price than its face value. When the going rate of interest is lower than the coupon rate, this condition arises. Its value will gradually decrease until it reaches its maturity value. A par value bond that sells at par, with a coupon rate equal to the current interest rate. The coupon is usually set at the going market rate on the day the bond is sold, so it sells at par at first.

Calculations:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 1

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:

Bond Price = C/k * $[\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk} } }{\frac{i}{k} } ]$ + $\frac{P}{(1 + \frac{i}{k})^{nk} }$

Just plug in the values and you will get:

Bond Price = 60 x 7.02 + 508.35

Bond Price = 421.41 508.35

Bond Price = $929.76

Similarly,

Data:

C = Coupon Payments = $60 (Par Value x Coupon Rate)

n = number of years = 10

i = market rate or required yield = 7% = 0.007

K = number of coupon payments in 1 year = 2

P = value at maturity or par value = 1000

Present value of ordinary annuity formula:

Bond Price = C/k * $[\frac{1 - \frac{1}{(1 + \frac{i}{k})^{nk} } }{\frac{i}{k} } ]$ + $\frac{P}{(1 + \frac{i}{k})^{nk} }$

Just plug in the values and you will get:

Bond Price = 30 x 14.21 + 502.57

Bond Price = 426.37 + 502.57

Bond Price = $928.94

8 0

3 years ago

Data mining can support the marketing function by: a. Eliminating the need for a firm to have a billing department b. Billing th

ohaa [14]

Answer:

D. Using customer's past purchase history to send information about related products and services the customer may be interested in

Explanation:

Data mining is the process whereby large pre existing databases are examined with the aim of generating new information. It is the extraction of usable data from a larger set of data. Company usually use this process to turn raw data into useful information that can be applied to their daily activities.

In the case of marketing, data mining helps in extracting useful information from a customer's purchase history in order to identify useful information on goods or services the customer may be interested in or attracted to.

3 0

3 years ago

Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in operating assets. Furthermo

maxonik [38]

Answer:

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

Explanation:

WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt

16% = 45%* Cost of Equity + 55%*(1-40%)*9%

16%-55%*(1-40%)*9% = 45%*Cost of Equity

Cost of Equity = 28.9556%

Current price of Stock = D1/(Cost of Equity - Growth)

25 = 4/(28.9556%-Growth)

Growth = 28.9556%-4/25 = 12.96%

ROE = Net income/Equity = 1.4/(45%*9)

Growth rate = (1- Payout ratio)*ROE

12.96% = (1-Payout ratio)* 1.4/(45%*9)

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

4 0

4 years ago