Answer:
Journal entry to record sale of toasters and warranty
Dr Cash 36,000
Cr Sales revenue 36,000
Dr Warranty expense 2,400
Cr Warranty liability 2,400
Adjusting entry for actual warranty expense
Dr Warranty liability 500
Cr Cash 500
Since the warranty covers a 5 year period, the remaining warranty expense cannot be recognized as warranty revenue yet. Only after the warranty period is over, will any money left over will be recognized as revenue.
Answer:
E. All the statements are correct
Explanation:
i. Corporations rarely pay tax on the interest income.
This statement is correct. Some companies do not even pay any income taxes.
ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.
Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.
iii. Short term capital gain and long-term capital gain are treated differently for individuals.
Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.
Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.
iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.
This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.
Answer:
$10,300
Explanation:
Accounts receivable, beginning = $24,000
Credit sales = $450,000
Cash collections from customers = $460,000
Accounts receivables written off = $3,700
Accounts receivables, ending = Accounts receivable, beginning + Credit sales - Cash collections from customers - Accounts receivables written off
Accounts receivables, ending = $24,000 + $450,000 - $460,000 - $3,700
Accounts receivables, ending = $10,300
So, at the end of the year, the balance in the Accounts receivable is $10,300.
These are factors that influences the personal economic choices that a person will decide:
-the resources you have available
-the money you decide to spend on leisure products
-the amount of money you put into your savings account
-and the manner in which you balance your time between work and leisure
In the answers above, the only choice that I did not check is number 1 because it is not a personal choice that is applied to everyone. resources and money are saved and used for personal choices of a person for leisure and needs.
Answer:
How much must Icon allow Emily to diversify this year?
The answer is $250,000
Explanation:
- After attaining the age of 55 years and participating already for ten years in the ESOP.
- Emily will be allowed to diversify the value equal to 25% of investments.
- 50% of the investment is allowed to be diversified if it is final year of participation but in the present case it is not the final year before the retirement of the Emily so she will not be allowed 50% diversification and only up to 25% is allowed on which the percentage of investment already diversified in previous years will also be reduced.
- Since here in the past no amount has been diversified by Emily so she will be allowed 25 % of investment to diversify in the current year which comes to $250,000 ($1,000,000* 25%). Thus the answer is $250,000.
