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3 years ago

Which statement about subsidiary ledger is most accurate

2 answers:

4 0

The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.

DochEvi [55]3 years ago

4 0

Answer: A subsidiary ledger account is a group of accounts in the sense that when these group of accounts are closely observed, the total combined balance equals that of a specific general ledger account.

Explanation:

The subsidiary ledger contains details of a specific general ledger. It acts as an intermediary set of account that connect to the general ledger. Examples of subsidiary (sub) ledger account are account payable ledger, account receivable ledger, fixed assets ledger, inventory ledgers and purchases ledger. Auditors can trace transactions from a subsidiary ledger account to a specific general ledger account and also to the financial statement to be assured that proper transactions of accounts are taken and recorded.

You might be interested in

Identify the two independent clauses in the following compound-complex sentence.

krek1111 [17]

The two independent clauses in the following compound-complex sentence are.

The production manager supported the changes.
He expected the process to work smoothly.

<u>Explanation:</u>

Compound sentence and complex sentence together makes a compound- complex sentence. A Clause is a sentence which has one subject or one verb.

The independent clause is a sentence which does not need a supportive sentence to explain it's situation and it makes a statement or asks a question.

And dependent clause is a sentence which begins with when, because, if etc. Therefore, the independent caluses will be the above given two sentences as they are statements and do not need a supportive statement.

5 0

3 years ago

A business buys motors that it uses to make blenders and mixers. The motors are an example of?

Levart [38]

Answer:

components

Explanation:

Components are goods used as materials in manufacturing other products. They are finished products in the real sense but are used as parts in making other products. Components are usually by an original equipment manufacturer and sold to other manufacturing companies or consumers as spare parts.

Motors are complete goods manufactured by an original equipment manufacturer. The manufacturer sells the motors as components to be used in the production of blenders. The motors are, therefore, material used in the making of blenders.

8 0

3 years ago

On December 31, 2020, Vaughn Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Vaug

Alinara [238K]

Answer:

1. 31 Dec

Dr Notes receivable $261,600

Dr Discount on notes receivable $45,401

Cr Sales revenue $216,199

B. 31-Dec

Dr Discount on notes receivable $21,619.9

Cr Interest revenue $21,619.9

C. Dec-31

Dr Discount on notes receivable $23,781.1

interest revenue $23,781.1

Dr Cash $261,600

Cr Notes receivable $261,600

Explanation:

A. Preparation of the journal entry to record the transaction of December 31, 2015, for the Ed Abbey Co

December 31, 2015

Dr Notes receivable $261,600

Dr Discount on notes receivable $45,401

($261,600-$216,199)

Cr Sales revenue $216,199

Computation of present value of note

PV of $261,600 due in 2 years at 10%

$261,600*.82645 = $216,199

B. Preparation of the journal entry for December 31, 2016

31-Dec

Dr Discount on notes receivable $21,619.9

[10%*$216,199]

Cr Interest revenue $21,619.9

C. Preparation of the journal entry for December 31, 2017

Dec-31

Dr Discount on notes receivable $23,781.1

interest revenue $23,781.1

($45,401-$21,619.9 )

Dr Cash $261,600

Cr Notes receivable $261,600

3 0

3 years ago

A consumer has $140 in monthly income to be spent on two goods Z and B. The price of good Z (Pz) is $6.00. The Marginal Rate

romanna [79]

Answer:

3 and 46.67 units

Explanation:

The formula and the computations are shown below:

The price of good B is

= {The price of good Z (Pz)} ÷ {Marginal rate of transformation}

= {$6} ÷ {2}

= 3

Now the number of units to be purchased for all income used is

= (Monthly income spent on two goods) ÷ (price of good B)

= ($140) ÷ (3)

= 46.67 units

By applying the above formula we can find out the price of good B and the number of units purchased

5 0

2 years ago

The following information is available for the Memphis and Billings companies:

igomit [66]

Answer:

(a) An income statement was prepared for Memphis and Billing Companies (b) The ROA for Memphis is = 5.6% while for Billing is 6.9%.

The ROE for Memphis is 13.9% for Billings it is 17.4%

(d) The Memphis company is the discounter

Explanation:

Solution

Given that:

(A) The Income statement for Memphis and Billing companies

Common size Income statement

Memphis % Billings %

Sales 15,00,000 100 15,00,000 100

The cost of Goods 10,50,000 70 11,25,000 75.00

The Gross profit 4,50,000 30 3,75,000 25.0

Operating expenses 3,50,000 23.3 2,50,00 16.7

Net income 1,00.000 6.7 1,25,000 8.3

(B) We compute the return assets which is given below:

The return on assets is = The net income/Total assets * 100

For Memphis,

The return on assets is = 5.6% ($100,000/18,00,000) * 100

Fro Billings,

The return on assets = 6.9% ($ 125,000/18,00,000) * 100

For the return on equity we have the following given below:

Return on equity is =Net income/Stockholder's equity * 100

For Memphis,

The return on equity =13.9% ($100,000/720,000) * 100

Fr Billings,

The return on equity = 17.4% ($125,000/720,000) * 100

(C) The Billing company is more profitable because it has a higher return on rate on equity than that of the Memphis company.

(D) The Memphis has a lower Net profit margin of 6.7% therefore it is the discounter.

4 0

3 years ago