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2 years ago

Cordell Inc. experienced the following events in 2018, its first year of operation:

Business

1 answer:

Zepler [3.9K]2 years ago

7 0

Answer:

See explanation

Explanation:

See the images to get the result.

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Dab Corporation was organized on January 1, Year 1. During Year 1, Dab had the following transactions relating to shareholders'

lisov135 [29]

Answer:

The total shareholders’ equity at the end of Year 1 is $487,400

Explanation:

The computation of the ending total shareholders’ equity is shown below:

= Common stock value in exchange of cash + net income + net holding gains - dividend paid

= $442,400 + $98,000 + $1,000 - $54,000

= $487,400

While calculating the ending balance of shareholder equity we added the net income, net holding gains and deducted the dividend paid to the common stock value amount

6 0

3 years ago

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance

Virty [35]

Answer:

Bank reconciliation:

Bank balance Augusts 31 $18,340

+ Deposits in transit $2,830

- Outstanding checks $3,520

Reconciled bank account $17,650

Cash balance reconciliation:

Cash balance August 31 $17,350

+ Error in recording check $360

- Bank fees $60

Reconciled cash account $17,650

B) Cash account balance $17,650

5 0

2 years ago

As a result of cash flow shortages, Washington Department Stores has fallen behind in payments to suppliers. Some suppliers are

xenn [34]

Answer:

The correct answer is letter "D": short-term financing.

Explanation:

Short-term financing allows companies to obtain capital for their day-to-day operations. The funds obtained are typically used for the transactions companies require during one period -one year, but the term for payment tends to be within six (6) to twenty-four (24) months. Under this scenario, the main purpose of firms is to keep their businesses up and running and obtain profits enough for the payment of the loan and reinvestment in the company.

7 0

2 years ago

Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at D

denis-greek [22]

Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

= 10% * 3,500,000

= $350,000

Principal repayment = 569,509 - 350,000

= $219,509

Date Account Titles and Explanation Debit Credit

Dec, 31 2020 Cash $569,609

Mortgage Payment $569,609

Date Account Titles and Explanation Debit Credit

Dec, 31 2021 Interest Expense $350,000

Mortgage Payable $219,509

Cash $569,609

7 0

3 years ago

"A tenant offers to sign a lease paying a rent of $1,000 per month, in advance (i.e., the rent will be paid at the beginning of

belka [17]

Answer:

$47,500

Explanation:

Since the payment is made monthly in advance for the period of 5 years, therefore the present value of annuity formula shall be used for the purpose of calculating the Present value of lease, which is given as follow:

Present value of annuity=R+R[(1-(1+i)^-n)/i]

In the given question

R=Rent per month paid in advance=$1,000

i=interest compounded monthly=10%/12=0.83%

n=number of payments involved=(12*5)-1=59

Present value of annuity=1,000+1,000[(1-(1+0.83%)^-59)/0.83%]

=$47,500

3 0

3 years ago