All categories

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

Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was

Yuki888 [10]

Answer:

The answer is: Garnett Co.'s net income is $7,600

Explanation:

To determine the net income we must first calculate the cost of goods sold and the commissions paid:

COGS = $50,000 x 40% = $20,000
Commissions = $32,000 x 10% = $3,200

Now we can elaborate the following income statement for Garnett Co.

Total sales $32,000

COGS ($20,000)

Commissions ($3,200)

<u>Advertising expense ($1,200) </u>

Net income $7,600

8 0

2 years ago

Stellar Enterprises made the following entry on December 31, 2020. Interest Expense 6,490 Interest Payable 6,490 (To record inte

cupoosta [38]

Answer:

Interest Receivable 6,490 debit

Interest Revenue 6,490 credit

(To record interest revenue from Stellar Enterprises loan)

Explanation:

The banks accounting will reflect the accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.

It will recognize the interest revenue from the accounting period

and will declare the interest receivable for the same amount.

<u>From this we can deduct:</u>

the payable from one entity is a receivable for another entry.

the interest expense from one firm will be interest revenue for another.

7 0

3 years ago

Harte Systems, Inc., a maker of electronic surveillance equipment, is considering selling to a well-known hardware chain the rig

Taya2010 [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The proposed deal calls for the hardware chain to pay Harte $30,000 and $25,000 at the end of years 1 and 2 and to make an annual year-end payments of $15,000 in years 3 through 9. The final payment to Harte of $10,000 would be due at the end of year 10.

Cash flows:

Year 1= 30,000

Year 2= 25,000

Year 3= 15,000

Year 4= 15,000

Year 5= 15,000

Year 6= 15,000

Year 7= 15,000

Year 8= 15,000

Year 9= 15,000

Year 10= 10,000

2) To calculate the present value we need to use the following formula for each cash flow:

PV= FV/(1+i)^n

Year 1= 30,000/1.12= 26,785.71

Year 2= 25,000/1.12= 22,321.43

Year 3= 15,000/1.12= 13,392.86

....

Year 10= 10,000/1.12^10= 3,219.73

PV= $104,508.27

3) The present value of cash inflows is higher than $100,000. It is more convenient to decline the $100,000.

4 0

2 years ago

Wims, Inc., has current assets of $3,900, net fixed assets of $26,500, current liabilities of $3,400, and long-term debt of $7,5

STALIN [3.7K]

Answer:

equity = $19500

Explanation:

Given data:

current assets $3900

net fixed assets $26,500

current liabilities $3400

debt = $7500

Total liabilities = current liabilities + long term debt

= 3400 + 7500 = $ 10,900

Total assets = current assets + net fixed assets

= 3900 + 26,500 = $30,400

We know

total assets = total liabilities + equity

30400 = 10900+ equity

equity = $19500

8 0

3 years ago

Harry leads the international marketing department of a smartphone manufacturer, Myfone. Myfone has recently decided to expand i

wlad13 [49]

Answer:

Availability of data.

Explanation:

The term “data availability” refers to the ability to ensure that required data is always accessible when and where needed within an organization's IT infrastructure, even when disruptions occur.

3 0

3 years ago