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3 years ago

On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts

Business

2 answers:

Brrunno [24]3 years ago

8 0

Answer: A

Explanation: Recieveable balance $18500, this is the cash inflow of the company

Allowance for doubtful accounts $1400 this is usually a percentage of money set aside from cash inflow for debts e.t.c.

Unaccountable account $400 usually debts

Receivable after deduction of allowance of doubtful accounts.

$18500 - $1400 = $ 17100

Allowance of doubtful accounts after deduction of debts

$1400 - $400 = $1000

Amount receivable immediately after write off

$17100 + $1000 = $18100

a_sh-v [17]3 years ago

5 0

Answer:

C. $17,100.

Explanation:

Before Write off

January 1, 2013 Accounts Receivable balance $18,500

Less Allowance for Doubtful Accounts was $1,400

Estimated realizable accounts accounts receivable $ 17,100

The write off method does not affect the realizable value of the accounts receivable. Both assets and net income are affected in the period bad debts expense is predicted and recorded with an adjusting entry.

After Write Off

Accounts Receivable $ 18,100

Less Allowance for Doubtful Accounts was $1,000

Estimated realizable accounts accounts receivable $ 17,100

Accounts Receivable $ 52,000

Less Net realized accounts accounts receivable $ 48,500

Uncollectibles (bad debts) $ 3,500

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To complete your degree and then go through graduate school, you will need $95,000 at end of each of the next 8 years. Your Aunt

VARVARA [1.3K]

Answer:

PMT = $95,000

Rate = 4%

Life = 8 years

a. Amount to be deposited today

= PV(Rate, N, -PMT)

= PV(4%, 8, -95,000)

= $639,610.76

b. Amount in account after 3rd withdrawal

= PV(Rate, N, -PMT)

= PV(4%, 5, -95,000)

= $422,913.12

c. Balance in account after 8th withdrawal

= = PV(Rate, N, -PMT)

= PV(4%, 0, -95,000)

= $0

d. How much would you have at the end of 8 years?

= FV(4%, 8, -639610.76)

= $875,351.49

5 0

3 years ago

Masterson, Inc., has 4.4 million shares of common stock outstanding. The current share price is $89.50, and the book value per s

valentinak56 [21]

Answer:

Masterson, Inc.

1. The company's capital structure weights on a book value basis are:

Book Value Weights:

Equity = 0.27 or 27%

Debts = 0.73 0r 73%

2. The company's capital structure weights on market value basis are:

Market Value Weights:

Equity = 0.75 or 75%

Debts = 0.25 or 25%

3. The market value weights of Masterson's common stock and debts are more relevant because they represent a more current valuation of the equity and the debts. It is easier to calculate the book value weights since the information is more readily available within the entity than the information on market weights.

Explanation:

a) Data and Calculations:

Equity Units Total Value

Outstanding common stock 4.4 million shares

Current share price $89.50 $393.8 million

Book value per share $11.25 $49.5 million

Debt Units Total Value

First bond:

Face value 81,000 $81 million

Market value 81,000 $78.165 million

Coupon rate = 5.1% $4.131 million p.a.

Second bond:

Face value 53,000 $53 million

Market value 53,000 $54.445 million

Coupon rate = 5.3% $2,809 million p.a.

Total book value of bonds 134,000 $134 million

Total market value of bonds 134,000 $132.61 million

Capital structure Equity Bonds Total

Book value $49.5 million $134 million $183.5 million

Market value $393.8 million $132.61 million $526.41 million

Book Value Weights:

Equity = $49.5/$183.5 = 0.27 or 27%

Debts = $134/$183.5 = 0.73 0r 73%

Market Value Weights:

Equity = $393.8/$526.41 = 0.75 or 75%

Debts = $132.61/$526.41 = 0.25 or 25%

3 0

2 years ago

Partnership records show the following capital balances at the date of Hopkin's withdrawal: M. Hammel, $80,000; D. Hopkins, $210

Anestetic [448]

Answer:

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

Cr M. Hammel, Capital 10,000

Cr Cash 230,000

Explanation:

Preparation of the December 31 journal entry for the partnership.

Based on the information given the December 31 journal entry for the partnership will be :

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

(100,000-80,000/2)

Cr M. Hammel, Capital 10,000

(100,000-80,000/2)

Cr Cash 230,000

3 0

2 years ago

Profits and losses are split as follows: Allen (20%), Burns (30%), and Costello (50%). Costello wants to leave the partnership a

eduard

Answer:

A. $24,000

Explanation:

The missing information is shown below:

Allen capital $60,000

Burns capital $30,000

Costello capital $90,000

For computing the balance of Burns’s capital account, first we have to determine the different amount which is shown below:

= Paid amount - Costello capital

= $100,000 - $90,000

= $10,000

This bonus amount would be deducted from the remaining partner's balances in the ratio of 3:2

For Burns, it would be

= $10,000 × 3 ÷ 5

= $6,000

So, the burns capital amount would be

= $30,000 - $6,000

= $24,000

7 0

3 years ago

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 220.00; Variable expense

dalvyx [7]

Answer:

The answer is d. 3911

Explanation:

First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is $220 - 97.5 = 122.5$ .

Next, knowing how much each unit contributes to cover the fixed costs, we can calculate how many units do we need to pay the fixed expenses. This is called "break even point" or BEP. The formula is Fixed Expenses / Contribution margin per unit. So, the BEP is $448,090 / 122.5 = 3,657.88$ .

With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is $31,000 / 122.5 = 253.06$ .

Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: $3,657.88 + 253.06 = 3,910.64 = 3,911$

7 0

3 years ago