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Rainbow [258]
3 years ago
7

Accounts receivable in the amount of $910,000 were assigned to the Fast Finance Company by Sheffield, Inc., as security for a lo

an of $780,000. The finance company assessed a 4% finance charge on the face amount of the loan, and the note bears interest at 8% per year. During the first month, Sheffield collected $507,000 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note. Make all the entries for Sheffield Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Business
1 answer:
MrRissso [65]3 years ago
6 0

Answer:

Journal entries

Explanation:

The journal entries are as follows

1. Cash $748,800

  Interest expense $31,200     ($780,000 × 4%)

            To Note payable $780,000

(Being the cash received is recorded)

2. Cash Dr $507,000

        To Account receivables $507,000

(Being the collection is recorded)

3. Note payable $507,000

  Interest expense  $2,600               ($780,000 × 4%  × 1 month ÷ 12 month)

          To Cash $509,600

(Being the note payable and the interest expense is recorded)

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2 years ago
If the government wants to increase production of a good to achieve marginal social benefit, then the following policy will most
Kobotan [32]

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a. a subsidy so that the firm can operate where marginal social benefit equals marginal social cost.

Explanation:

The private company is producing when the marginal revenue matches the marginal cost. The governemtn will want to decrease the cost (that's by subsidize the activity) to match the marginal revenue considering the positive externalities.

The government will do a pigouvian subsidy.

The government reasons to go for this is that the good or services provide positive externalities Which are enjoy by people who doens't purchase the good. Thus, this subsidy will increase the amount of ooutput thus, generating a better social benefit.

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Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income
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'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

  1. Taxes should be sufficient to fulfill the government's requirements
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  3. Taxes should be efficient economically
  4. Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

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In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

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The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

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