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3 years ago

Bravo Automotive provide repair services for $250 on account. What account will be debited?

Business

1 answer:

algol [13]3 years ago

7 0

Answer:

The correct answer is: Accounts receivable.

Explanation:

Accounts receivable is an accounting term used to refer to the money that is owed to a company by its customers. The company that may be individuals or corporations are the debtors since they owe money for the goods or services provided by the company on credit. Accounts receivable are recorded as a current asset in the Balance Sheet.

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Collections of related activities intended to achieve a common purpose are called:______.

drek231 [11]

Answer:

Processes

Explanation:

The process is a general term that is used in all fields of human endeavor including business operations to defined a form of set instructions or connected actions that seeks to derive or eventually get a mutual goal at the end. In the business world, it is called Business Process.

Hence, Collections of related activities intended to achieve a common purpose are called PROCESSES

7 0

4 years ago

In a market, buyers want to pay the _____ possible price and sellers want to charge the _____ possible price.

Vaselesa [24]

Answer:

B is the correct answer

Explanation:

7 0

3 years ago

Suppose you are going to purchase a house.

Alexxandr [17]

Answer:

(1) Monthly payment: 1145.74.

(2) Interest payment portion of 1st Monthly payment: 799.92

(3) Principal payment portion of the 1st Monthly payment: 345.82

(4) Balance after the 1st payment: 239654.18

Explanation:

Note: The following instruction in the question was adhered to througout while answering this question:

Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23.

(1) Monthly payment:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or amount borrowed from bank = House cost - Down payment = 300000 - (300000 * 20%) = 240000

P = Monthly payment = ?

r = Monthly interest rate = annual percentage rate (APR) / Number of months in a year = 4% / 12 = 0.04 / 12 = 0.003333

n = number of months = Number of years of the loan * Number of months in a year = 30 * 12 = 360

Substitute the values into equation (1) and solve for P, we have:

240000 = P * ((1 - (1 / (1 + 0.003333))^360) / 0.003333)

240000 = P * 209.471358

P = 240000 / 209.471358 = 1145.74

Therefore, monthly payment is 1145.74.

(2) The interest payment portion of 1st Monthly payment:

Interest payment portion of 1st Monthly payment = PV * r = 240000 * 0.003333 = 799.92

(3) The principal payment portion of the 1st Monthly payment:

Principal payment portion of the 1st Monthly payment = P - Interest payment portion of 1st Monthly payment = 1145.74 - 799.92 = 345.82

(4) Balance after the 1st payment:

Balance after the 1st payment = PV - Principal payment portion of the 1st Monthly payment = 240000 - 345.82 = 239654.18

7 0

3 years ago

Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on De

kati45 [8]

Answer:

1. $ 129,352,725

2. Jan 1 2016

Jan 1 2016

Dr Cash $ 129,352,725

Dr Discount on issue of bonds $20,647,275

Cr Bonds payable $150,000,000

3. June 30, 2016

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

4. December 31, 2023

Dr Interest expense $8,188,243

Cr Discount on bonds payable $688,243

Cr Cash $7,500,000

Explanation:

1. Calculation to Determine the price of the bonds at January 1, 2016

First step is to find Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1) using ordinary annuity table

Present value of an ordinary annuity of $1: n = 30, i = 6% (PVA of $1)

Present value of an ordinary annuity of $1=13.76483

Second step is to find the Present value of $1: n = 30, i = 6% (PV of $1)

Present value of $1: n = 30, i = 6% (PV of $1)=0.17411

Now let calculate the Price of the bonds at January 1, 2016

Interest $ 103,236,225

[(10%/2 semiannually*$150,000,000) *13.76483]

Add Principal $26,116,500

($150,000,000 *0.17411 )

Present value (price) of the bonds $ 129,352,725

($ 103,236,225+$26,116,500)

Therefore the Price of the bonds at January 1, 2016 will be $ 129,352,725

2. Preparation of the journal entry to record their issuance by Universal Foods on January 1, 2016.

Jan 1 2016

Dr Cash $ 129,352,725

($ 103,236,225+$26,116,500)

Dr Discount on issue of bonds $20,647,275

($150,000,000-$ 129,352,725)

Cr Bonds payable $150,000,000

(Being to record issue of Bond)

3. Preparation of the journal entry to record interest on June 30, 2016

June 30, 2016

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2 × $150,000,000)

(Being to record interest paid)

4. Preparation of the journal entry to record interest on December 31, 2023.

December 31, 2023

Dr Interest expense $8,188,243

($7,500,000 + $688,243)

Cr Discount on bonds payable $688,243

($20,647,275 ÷ 30)

Cr Cash $7,500,000

(10%/2× $150,000,000)

(Being to record interest paid)

6 0

3 years ago

Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2014, the partners were planni

Marat540 [252]

Answer:

Explanation:

Account Name Debit Credit

Cash $160,000

Accounts Receivable $2,000

Equipment $ 18,300

Supplies $1,200

Contributed Capital $181,500

a. Received $80,000 cash from each of the two shareholders to form the corporation, in addition to $2,000 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair market value of $13,000 and $1,200 in supplies.

b. Purchased a vacant store for sale in a good location for $360,000, making a $72,000 cash down payment and signing a 10-year mortgage from a local bank for the rest

Account Name Debit Credit

Building $360,000

Cash $ 72,000

Notes Payable $288,000

c. Borrowed $50,000 from the local bank on a 10%, one year note.

Account Name Debit Credit

Cash $50,000

Notes Payable $50,000

d) Purchased and used food and paper supplies costing 10,830 in March; paid cash.

Purchase of Supplies:

Account Name Debit Credit

Supplies $10,830

Cash $10,830

Account Name Debit Credit

Supplies Expense $10,830

Supplies $10,830

e) Catered four parties in March for $4,200; $1,600 was billed and the rest was received in cash.

Account Name Debit Credit

Cash $2,600

Accounts Receivable $1,600

Catering Revenue $4,200

f. Made and sold food at the retail store for $11,900 cash. (assume the cost of these sales was already recorded as part of transaction d.)

Account Name Debit Credit

Cash $11,900

Food Sales Revenue $11,900

g. Received a telephone bill for March to be paid in April.

Account Name Debit Credit

Telephone Expense $420

Telephone Payable $420

h. Paid $363 in gas for the van in March

Account Name Debit Credit

Gas Expense $363

Cash $363

i. Paid $6,280 in wages to employees who worked in March.

Account Name Debit Credit

Wages Expense $6,280

Cash $6,280

j. Paid a $300 dividend from the corporation to EACH owner

Account Name Debit Credit

Retained Earnings $600

Cash $600

k. Purchased $50,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $20,000 (added to the cost of the building); paid cash.

Account Name Debit Credit

Equipment $50,000

Building $20,000

Cash $70,000

a Cash flow from FINANCING ACTIVITIES

b Cash flow from INVESTING ACTIVITIES ($72,000) and Non-Cash Investing and Financing Activity ($288,000).

c Cash flow from FINANCING ACTIVITIES.

d Non-Cash OPERATING ACTIVITIES.

e Cash flow from OPERATING ACTIVITIES ($2,600); Non-Cash Operating Activity ($1,600).

f Cash flow from OPERATING ACTIVITIES

g Non-Cash OPERATING ACTIVITIES.

h Cash flow from OPERATING ACTIVITIES.

i Cash flow from OPERATING ACTIVITIES.

j Cash flow from FINANCING ACTIVITIES.

k Cash flow from INVESTING ACTIVITIES

5 0

3 years ago