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Inga [223]
3 years ago
8

Which of the following items would require an adjusting entry at the end of each accounting period? a.Vacation pay earned by emp

loyees b.Garnishment for child support payments c.Union dues withheld d.Withholdings for a 401(k) plan e.None of these choices are correct.
Business
1 answer:
nignag [31]3 years ago
4 0

Answer: a.Vacation pay earned by employees

Explanation: Adjusting entries refers to journal entry made to ensure that some financial activity is assigned to the posting period in which the activity occurred. Their main purpose is to match incomes and expenses to appropriate accounting periods. They are made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

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When the market breaks through the moving average line from below, a technical analyst would probably suggest that it is a good
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I believe the answer is invest
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2 years ago
Consider the following three stocks. (a) Stock A is expected to provide a dividend of $10 a share forever. (b) Stock B is expect
Archy [21]

Answer:

The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).

Explanation:

to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.

Let r be the discount rate which is 10%.

a.

The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.

The price of this stock can be calculated as,

Price or P0 =  Dividend / r

P0 = 10 / 0.1  = $100

b.

The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.

P0 = D1 / r - g

Where,

  • D1 is the dividend for the next period
  • r is the cost of equity or discount rate
  • g is the growth rate in dividends

P0 = 5 / (0.1 - 0.04)

P0 = $83.33

c.

The price of this stock can be calculated using the present of dividends.

P0 = 5 / (1+0.1)  +  5 * (1+0.2) / (1+0.1)^2  +  5 * (1+0.2)^2 / (1+0.1)^3  +  

5 * (1+0.2)^3 / (1+0.1)^4  +  5 * (1+0.2)^4 / (1+0.1)^5  +  5 * (1+0.2)^5 / (1+0.1)^6

P0 = $34.28

3 0
3 years ago
Ji-woo has a new credit card. She wants to use it for online shopping. What are three things that make this a poor choice
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1. Paying her bill late( messes up your credit score)
2. Overspending ( self-explanatory)
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6 0
2 years ago
Pro Corp., a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB), which has a current exch
aleksklad [387]

Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Exchange rate of 1 Baht= $0.022

Expected inflation in united states (Assume) = 3% = 0.03

Expected inflation in Thailand (Assume) = 10% = 0.10

Computation:

After 1 year  rate of 1 Baht in Dollar

The price in US = 1 × (1+0.03) = $1.03

The price in Thailand = 1 × (1+0.10) = 1.10 baht

1 baht = 1.03×0.022÷1.1 = $0.0206

Therefore, 1 baht = $0.21 (approx)

4 0
2 years ago
On June 5, Staley Electronics purchases 180 units of inventory on account for $18 each. After closer examination, Staley determi
Oduvanchick [21]

Answer along with its Explanation:

Journal entry to record the credit purchase of the 100 inventory units would be increase in inventory and accounts payables as under:

Dr Inventory Purchases $3,240

Cr Accounts Payables            $3,240

The journal entry to record the purchase return is the reversal of the inventory purchases and will be with purchase value of 20 inventory units at $18 per unit. The transaction is given as under:

Dr Accounts Payables $360

Cr Inventory Purchases    $360

The entry to record the sale of the inventory would be in two steps and are given as under:

Step 1: Record the increase in Credit Sales, which will also increase the accounts receivables and the sale value $31 per unit will be used.

Dr Accounts Receivables $4,960

Cr Revenue Account               $4,960

Step 2: Record the decrease in inventory as the asset after sale would be no more in the inventory so the cost of this inventory would be reduced to zero, which will be allocated to cost of goods sold.

Dr Cost of Goods Sold $2,880

Cr Inventory Account        $2,880

7 0
3 years ago
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