Answer:
Option 4- Interest on Interest
Explanation:
Look we earned $8 in the first year which we invested in the same business. Okay now we again earned 8% on this $100 and $8 invested in the second year. The 8% on the $8 is $0.64 which is the interest earned on the interest invested in the previous year.
Answer: Pastoral society
Explanation:
A pastoral society is a social community made up largely of nomads whose major activities are centered around animal breeding and herding.
The major product for sale in a pastoral society is livestock, such as: cattles, goats, sheep, horses, camel etc.
To find out the distance between -13 and 17 using the absolute value, we need to add 13 to 0 because the distance between -13 and 0 is 13. Then add 13 to 17 which is equals 30. so by using the absolute value, the distance is 30
Equation:
13+0=13
13+17=30
Answer:
Dr Cash 150
Cr Interest revenue 150
Explanation:
Preparation of the necessary journal entry
Based on the information given we were told that the company's bank reconciliation at the month of June 30 included interest earned in the amount of $150 which means that the necessary journal entry will be to Debit Cash with 150 and Credit interest revenue with 150
Dr Cash 150
Cr Interest revenue 150
Answer:
an increase of $3,000 in accounts receivable
Explanation:
An account receivable is an asset. It is when a company is expecting to receive money for goods it has provided or services it has rendered.
The accounting convention of realization and matching allow for the business entity to record this receivable in its books in the particular year it has occurred whether it has received the money or not as long as risk and reward has been exchanged and there is a reliable measurement for the amount to be received or exchanged.
In the question above, the company started the year with $5000 it is expecting to receive from customers and at the end of the year, it had $8,000 it was expecting to receive from customers. This means that in the course of the year, this particular entity has sold more goods on credit, thus having more receivables from its customers.
It is also possible that the company needs to work on its receivables policy.
I hope this explanations helps you understand everything around receivables accounting.
