You charge $500 on each of your two credit cards.
One is American Express with an interest rate of 15.99%.
The other is Chase Sapphire with an interest rate of
20.99%. Assuming that you are only making the minimum
payment of $25 to each of the credit card companies,
which card will you pay off first
Answer:
Mapleleaf Industries
Journal Entry
Debit Cash Dividend $40,800
Credit Dividends Payable $40,800
To record the declaration of $0.85 per share cash dividend.
Explanation:
This journal entry shows the two accounts involved and how they are recorded when a cash dividend is declared (declaration date).
Calculation of cash dividends is based on 48,000 shares of common stock outstanding and not on the issued shares nor the authorized. Usually, dividends are only payable to shareholders of record, who appear on the register of the company as holders of the shares on the specified date (date of records).
So, the divided equals $40,800 (48,000 x $0.85).
Answer:
21,000
Explanation:
Add 5,000 to your 16,000. I subtracted 1,000 from 16,000 to equal 15,000. Then, add 5,000 to your 15,000 to equal 20,000. Finally, add your 1,000 agian to equal 21,000.
Answer:
B: $1,500 is recognized this year, $ 9,000 next year and $ 7,500 in last year of contract.
Explanation:
Steven has adopted the accrual method in recording its revenue.
Accrual is an accounting concept which means expenses and revenues are recorded by a business when they are incurred not when cash is received or paid.
Accrual basis of accounting gives more accurate and true results as compare to cash basis accounting.
The payment received in September of $ 18,000 was the income for 24 months so it was wrong to record the whole amount as an income in September.
In the first year 2 months of income is recorded for November and December ($ 18,000÷24 = $750 per month) $750 × 2 = $1500.
In the second year 12 months revenue will be recognized ($750 per month × 12 = $ 9,000)
In the last year 10 month remained out of 24 months so the income recognized was ( $750 × 10 = $ 7,500)
Answer:
the amount of bad debt expense for the adjusting entry is $8,210
Explanation:
The computation of the amount of bad debt expense for the adjusting entry is shown below:
= Unadjusted trial balance × estimated percentage - credit balance of allowance for doubtful accounts
= $130,500 × 7% - $925
= $9,135 - $925
= $8,210
Hence, the amount of bad debt expense for the adjusting entry is $8,210