Only financial institutions can borrow from the Fed.

Concepts for Analysis 24-3 (Essay) Presented below are three independent situations.

Helga [31]

Answer:1. Make provision for warranty claims.

2. Disclosure of contingent liability

3. No cost should be recorded.

Explanation:

Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.

Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.

The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.

6 0

3 years ago

Analysis of Adjusting Entry for Supplies: Analyze each situation and indicate the correct dollar amount for the adjusting entry.

alexgriva [62]

Question Completion:

POSTING ADJUSTING ENTRIES Two adjusting entries are in the following general journal. Post these adjusting entries to the four general ledger accounts. The following account numbers were taken from the chart of accounts: 141, Supplies; 219, Wages Payable 511, Wages Expense; and 523, Supplies Expense. If you are not using the working papers that accompany this text, enter the following balances before posting the entries: Supplies, $200 Dr; Wages Expense, $1,200 Dr

Answer:

1. Ending inventory of supplies is $239.

(Balance Sheet) (Income Statement)

Supplies $239 Supplies Expense $360 ($599 - $239)

TB 599

Bal.___ $239

2. Amount of supplies used is $235.

(Balance Sheet) (Income Statement)

Supplies $235 Supplies Expense $235

TB 470

Bal.___$235

ANALYSIS OF ADJUSTING ENTRY FOR INSURANCE: Analyze each situation and indicate the correct dollar amount for the adjusting entry

1. Amount of insurance expired is $970.

(Balance Sheet) (Income Statement)

Prepaid Insurance $480 Insurance Expense $970

($1,450 - $970)

TB 1,450

2. Amount of unexpired insurance is $565.

(Balance Sheet) (Income Statement)

Prepaid Insurance $565 Insurance Expense $785 ($1,350 - $785)

TB 1,350

141, Supplies

Account Titles Debit Credit

523, Supplies Expense $200

219, Wages Payable

Account Titles Debit Credit

511, Wages Expense $1,200

511, Wages Expense

Account Titles Debit Credit

219, Wages Payable $1,200

523, Supplies Expense

Account Titles Debit Credit

141, Supplies $200

Explanation:

a) Required chart of accounts:

141, Supplies

219, Wages Payable

511, Wages Expense

523, Supplies Expense

Adjusting entries:

Supplies, $200 Dr; Wages Expense, $1,200 Dr

8 0

3 years ago

The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for

SashulF [63]

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

This spread exists because dealers need to cover expenses and make a profit

8 0

4 years ago

Natalie and Sam are reviewing the Loan Estimate form to ensure the date, their names, the property address, and sales price is l

Nady [450]

Additionally, the information provided about their loan term, purpose, product, type, and rate lock should Match what the lender discussed with both of them.

What is a Loan Estimate?

The Loan Estimate informs you significant insights about the credit you have mentioned. The moneylender should give you a Loan Estimate inside three work long stretches of accepting your application.

The Loan Estimate is a structure that produced results on Oct. 3, 2015.

The structure gives you significant data, including the assessed loan fee, regularly scheduled installment, and all out shutting costs for the advance.
The Loan Estimate likewise gives you data about the assessed expenses of charges and protection, and how the financing cost and installments might change from here on out.
Furthermore, the structure shows assuming that the credit has unique highlights that you will need to know about, similar to punishments for taking care of the credit early (a prepayment punishment) or increments to the home loan advance equilibrium regardless of whether installments are made on time (negative amortization). In the event that your credit has a negative amortization highlight, it shows up in the portrayal of the credit item.

To learn more about Loan estimate from the given link

brainly.com/question/10936652

#SPJ4

7 0

2 years ago

In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. To the extent t

cluponka [151]

Answer:

Brand dilution

Explanation:

Brand dilution can be referred to as the reduction in the value of a particular brand.

Common causes of brand dilution include:

- Expanding into new market segments without careful consideration of how much value such product will add to the brand.

- Production of products that are not up to standards with the previously produced ones, this inconsistency could lead to loss of customers trust in the brand.

7 0

4 years ago