Answer:
Option (D) is correct.
Explanation:
Accounts receivables refers to a term that is used by the businesses when a company sells the goods on account or credit to its customers and customers promise to pay this amount at a later date. The accounts receivable is shown under the current assets. When a company receives the amount of receivables then it will increases its cash and decreases the accounts receivables.
Answer:
$481
Explanation:
Amount paid = Amount lent - Amount left
Amount paid = $14,033 - $8,261
Amount paid = $5,772
Average amount paid each month = Amount paid / Number of months
Average amount paid each month = $5,772 / 12
Average amount paid each month = $481
So, the average amount of Diego's monthly payments is $481.
Answer:
D. No loss recognized and a reduction in E&P of $200,000
Explanation:
Given that:
- Current and accumulated E&P : $500,000
- A distribution of land to its sole shareholder: $200,000
- E&P basis to Catamount : $250,000
From that, we can see that the current and accumulated E&P is greater than its distribution of land so no loss would be reported so there will be reduction in earning and profits of the company of $200,000.
Hope it will find you well.
Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
- Partnership or C corporation with less than $5 million in total sales revenue per year
- Sole proprietorship or S corporation with less than $1 million in total sales revenue
- Cannot be a publicly traded corporation
- Personal service businesses with more than 95% of revenue specifically related to services.
- Family owned farms with total annual sales revenue less than $25 million.
Answer:
Explanation:
Bank reconciliation statement:
Cash account balance $3950
Less: Deposit in transit ($900)
Less: Bank service charges ($75)
Add: Interest added to the checking account by the bank $150
Add: Checks outstanding $960
Less: Check drawn incorrectly charged by the bank ($85) [150-65]
Adjusted balance $4,000
