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Virty [35]
3 years ago
15

Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex

also paid a brokerage fee of $1,000. Amex intends to hold the bonds until maturity and has the ability to do so. When the bonds mature on March 30, 2020, Amex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30, 2018?A) a debit to Held-to-Maturity Debt Investments for $25,000B) a debit to Trading-Debt Investments for $25,000C) a debit to Held-to-Maturity Debt Investments for $26,000D) a debit to Trading-Debt Investments for $26,000
Business
1 answer:
Yanka [14]3 years ago
6 0

Answer:

C. a debit to Held-to-Maturity Debt investments for $26,000

Explanation:

In as much Amex corporation is intending to place on hold the bonds till they mature; total investments must be recorded i.e price of bonds including commission for brokerage, as held to securities until they mature.

Classification of investments in securities are ; Held-to-maturity, meaning that the company is not planning to sell the investments hence hold on to them till they mature. They are however classified as non current assets. Investment in securities could also be made available for sale or held for further trading.

The journal entry is therefore;

Dr Held-to-Maturity debts investments $26,000

Cr Cash $26,000

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Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Castor Soda had a turnover ratio of
Bess [88]

Answer:

This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

Explanation:

The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.

This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.

The formula for calculating the accounts receivable turnover ratio is as follows:

Accounts receivable turnover ratio =  Net credit sales / Average accounts receivable

When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.

The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

3 0
3 years ago
One of the three economic questions deals with deciding what goods and services should be produced. what the costs of production
abruzzese [7]

Answer:

The correct answer is What Goods and Services should be produced.

Explanation:

The problem ‘what to produce’ can be divided into two related questions. First, which goods are to be produced and which not; and second, in what quantities those goods, which the economy has decided to produce, are to be produced. If productive resources were unlimited we could produce as many numbers of goods as we liked and, therefore, the question “What goods to be produced and what not” would not have arisen. But because resources are in fact scarce relative to human wants, an economy must choose among different alternative collections of goods and services that it should produce.

If the Society decides to produce particular goods in a larger quantity, it will have to withdraw resources from the production of some other goods. Further, an economy has to decide how much resources should be allocated for the production of consumer goods and how much for capital goods. In other words, an economy has to decide the respective quantities of consumer goods and capital goods to be produced.

The choice between consumer goods and capital goods involves the choice between the present and the future. If the society decides to produce more capital goods, some resources will have to be taken away from the production of consumer goods and. therefore, the production of consumer goods would have to be cut down. But greater amount of capital goods would make possible the production of larger quantities of consumer goods in the future. Thus, we see that some current consumption has to be sacrificed for the sake of more consumption in the future.

6 0
3 years ago
A company had sales of $500,000 in 1996 and sales of $720,000 in 1998. Use the midpoint formula to find the company's sales in 1
rjkz [21]

Answer:

$610,000

Explanation:

According to the midpoint value, we have to find out the mid value of two amount.

As in the question, the sales for 1996 and the sales for 1998 are given and we have to find out the sales for 1997

So, by using the mid point formula approach, the sales for 1997 is

= (1996 sales + 1998 sales) ÷ (Number of years)

= ($500,000 + $720,000) ÷ (2 years)

= ($1,220,000) ÷ (2 years)

= $610,000

Therefore, the estimated sales value of the company for year 1997 is $610,000

3 0
3 years ago
How will the aggressive e-commerce plan implemented by Walmart affect operations at its retail locations
Lisa [10]

Answer and Explanation:

As we know that Walmart has the biggest size as a strength. Even there is market saturation but still it opened various retail stores. having more than 10,000 stores in international market it seen that there is large amount of profits. Now after implementing the new e-commerce plan the Walmart leave the competition behind as it helped in covering the great amount of customers range due to this it would create a favorable response also it would be helped in online shopping. having e-commerce plan will give the benefit to generate more sales as compared to before

4 0
3 years ago
Ethos is the Greek word for<br> O profit<br> O logic<br> O character<br> O authority
TiliK225 [7]

Answer:

The correct answer is character

6 0
2 years ago
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