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3 years ago

Part A Smith Company experienced the following accounting events during 2018:

Business

1 answer:

ValentinkaMS [17]3 years ago

6 0

Answer:

1. Cash (Dr.) $2,000

Common Stock (Cr.) $2,000

2. Accounts Receivable (Dr.) $1,500

Revenue (Cr.) $1,500

3. Cash (Dr.) $1,200

Accounts Receivable (Cr.) $1,200

4. Salaries expense accrued (Dr.) $900

Salaries payable (Cr.) $900

5. Salary Payable (Dr.) $700

Cash (Cr.) $700

6. Dividends paid (Dr.) $100

Cash (Cr.) $100

7.Prepaid Insurance (Dr.) $360

Cash (Cr.) $360

8. Cash (Dr.) $2,880

Unearned revenue (Cr.) $2,880

9. Insurance Expense (Dr.) $290

Prepaid Insurance (Cr.) $290

10. Unearned revenue (Dr.) $2,880

Revenue (Cr.) $2,880.

Explanation:

Smith company has started its business and incurred the transactions. These transactions need to be recorded to charge each and every expense in their respective accounts. The expenses are recorded in the journal entries and then ledger accounts will be formed to summaries all the expenses in their respective account heads.

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Problem 10-4 Partnership Formation (LO 10.2) Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the t

dexar [7]

Answer:

$31,000

Explanation:

Calculation to determine Elaine's current basis in her partnership interest

Using this formula

Elaine's current basis= Value of original basis + (interest purchased - Cash received) + Tax exempt interest

Let plug in the formula

Elaine's current basis= $40,000 + ($70,000 - $80,000) + $1,000

Elaine's current basis= $40,000 - $10,000 + $1,000

Elaine's current basis= $31,000

Therefore Elaine's current basis in her partnership interest is $31,000

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3 years ago

Melissa owns the following portfolio of stocks. What is the return on her portfolio? Stock Amount Invested Return A $8.000 17.5%

s344n2d4d5 [400]

Answer:

The option c is a right answer.

Explanation:

For calculating the return on her portfolio, the steps is to be followed which is shown below:

Step 1: First compute the weight-age of each portfolio.

Step 2: Multiply the weight-age amount to invested return.

Step 3: After multiply the amounts, the expected return comes.

Mathematically,

Step 1: Weight-age is to be computed by

= Each Portfolio amount ÷ total stock amount

where total stock amount = $8,000 + $4,000 +$12,000

=$24,000

For A = $8,000 ÷ $24,000 = 0.3333

For B = $4000 ÷ $24,000 = 0.1666

For C = $12000 ÷ $24,000 = 0.50

Step 2:

Expected Return for A = Weight-age × invested return

= 0.3333 × 17.5%

= 5.83%

Expected Return for B = Weight-age × invested return

= 0.1666 × 11.0%

= 1.83%

Expected Return for C = Weight-age × invested return

= 0.50 × 4.30%

= 2.15%

So, the total return on her portfolio is a sum of Expected Return for A + Expected Return for B +Expected Return for C

= 5.83% + 1.83% + 2.15%

= 9.81 %

Hence, the return on her portfolio is 9.81% .

Therefore, the option c is a right answer

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3 years ago

Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp

slava [35]

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

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3 years ago

What is an Australian ballot?

lbvjy [14]

The secret ballot is a voting method in which a voter's choices in an election or a referendum are anonymous, forestalling attempts to influence the voter by intimidation, blackmailing, and potential vote buying. The system is one means of achieving the goal of political privacy.

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3 years ago

Read 2 more answers

Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each alternative has an expected life o

valkas [14]

Answer:

1. 18.09%

2. 12%

3. 20.02%

Explanation:

As the MARR is 15%, we will accept projects which have IRR more than 15%. As the projects are mutually exclusive, we will choose only one project.

An IRR (Internal Rate of Return) is the rate which makes the NPV (Net Present Value) = ZERO.

The formula to calculate IRR is: 0 = P0 + P1/(1+IRR) + P2/(1+IRR)2 + P3/(1+IRR)3 + . . . +Pn/(1+IRR)n where P0 = Initial cash outflow

And P1, . . . Pn equals the cash inflows in periods 1, 2, . . . n, respectively.

1) IRR of project 1:

0 = -$20,000 + $4,465/(1+IRR)1 + $4,465/(1+IRR)2 + $4,465/(1+IRR)3 + . . . + $4,465/(1+IRR)10

Solving for IRR we have = 18.09%

2) IRR of project 2:

0 = -$10,000 + $1,770/(1+IRR)1 + $1,770/(1+IRR)2 + $1,770/(1+IRR)3 + . . . + $1,770/(1+IRR)10

Solving for IRR we have = 12%

3) IRR of project 3:

0 = -$15,000 + $3,580/(1+IRR)1 + $3,580/(1+IRR)2 + $3,580/(1+IRR)3 + . . . + $3,580/(1+IRR)10

Solving for IRR we have = 20.02%

We will choose project 3 as it has the highest IRR.

8 0

4 years ago