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GenaCL600 [577]
3 years ago
15

On December 30, Year 12, AGH, Inc. purchased a machine from Grant Corp. inexchange for a zero-interest-bearing note requiring ei

ght payments of $70,000. The first paymentwas made on December 30, Year 12, and the others are due annually on December 30.At date of issuance, the prevailing rate of interest for this type of note was 11%. Presentvalue factors are as follow:
Period Present Value of Ordinary Annuity of 1 at 1100 Present Value of Annuity Due of 1 at 11%
7 4.712 5.231
8 5.146 5.712

On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:______
Business
1 answer:
andrey2020 [161]3 years ago
6 0

Answer:

$329,840

Explanation:

Calculation to determine the net note payable to Grant

Net note payable to Grant=$70,000 × 4.712

Net note payable to Grant= $329,840

OR

Net note payable to Grant= ($70,000 × 5.712) – $70,000

Net note payable to Grant= $329,840

Therefore On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:$329,840

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During the current year, sales on account were $306,673, collections on account were $290,750, write-offs of bad debts were $7,0
sweet-ann [11.9K]

Answer:

  • 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.

Accounts Rec T-Account  

$ 306.673 Debit

$ 290.750 Credit

$ 7.059    Credit

$ 8.864    Debit Balance

Allowance for Doubtful Accounts T-Account  

$ 7.059 Debit

$ 4.775 Credit

$ 2.284 Debit Balance

  • 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.

$ 4.775   Dr Bad Debt Expense

  • 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.

$ 2.284    Dr (Debit) Allowance for Uncollectible Accounts

$ 8.864    Dr (Debit) Accounts Receivable                        

Explanation:

  • Initial Balance

Dr Accounts Receivable  $ 306.673

 

  • Write-offs of bad debts  

Cash $ 290.750

Cr Accounts Receivable  $ 290.750

 

  • Write-offs of bad debts  

Dr Allowance for Uncollectible Accounts $ 7.059

Cr Accounts Receivable  $ 7.059

 

  • Bad debt expense adjustment  

Dr Bad Debt Expense $ 4.775

Cr Allowance for Uncollectible Accounts $ 4.775

 

  • 1-b. Complete the amounts related to Accounts Receivable and  

Bad Debt Expense that would be reported on the INCOME STATEMENT for the current year  

Dr Bad Debt Expense $ 4.775

 

  • 1-c. Complete the amounts related to Accounts Receivable and  

Bad Debt Expense that would be reported on the BALANCE SHEET for the current year.  

Dr Allowance for Uncollectible Accounts $ 2.284

Dr Accounts Receivable  $ 8.864

6 0
3 years ago
If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is:_________
Ira Lisetskai [31]

If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.

<h3>What is maximum gain potential/capital gain?</h3>

When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.

Now according to the question-

  • A short stock with such a short puts is an income strategy with unlimited loss potential.
  • Although the customer will profit if the price falls, the customer signed an in-the-money put that would be exercised, requiring the client to acquire stock at 80 for a $100 loss here on stock shorted at 79.
  • However, the customer collected $500 in premiums, for a total gain of $400.
  • The break even point for a brief stock-short put is the short sale price plus the premium.
  • In this scenario, the break-even point is 84, and the maximum gain is four points, between 84 to 80.

Therefore, the maximum gain potential is 400.

To know more about the maximum gain/capital gain, here

brainly.com/question/1381751

#SPJ4

4 0
1 year ago
Kl textiles writes 22 checks a day for an average amount of $827 each. these checks generally clear the bank 3.5 days after they
Vitek1552 [10]

Answer:

$63,679

Explanation:

Kl textiles

Disbursement Float can occur in a situation where a person, company or organisation spent an amount of money in which the amount spent has not be removed or taken out of the person, company or organisation

bank account. Example is written out a checks in which the checks has not be cleared form the company bank account till after some days

Disbursement float =

22 × $827 ×3.5

= $63,679

Therefore the amount of the firm's disbursement float will be $63,679 because Kl textiles writes 22 checks a day for an average amount of $827 each in which the checks generally clear the bank 3.5 days after it was written.

6 0
3 years ago
Read 2 more answers
Why are publicly traded corporations required to release financial reports on a regular basis?
sergiy2304 [10]

The correct answer is A.

In a corporation the shareholders are the owners. They are required to release the financial reports because they are entitled to transparency and need them in order to base their investment decisions on their contents.

7 0
3 years ago
Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which in
Oxana [17]

Answer:

                                            Trial balance for Yi Min

                                                on the May 31, YY

                                                                             Dr.                  Cr.

                                                                              $                     $

Cash                                                                  37,600

Office supplies                                                      890

Prepaid insurance                                             4,600

Office equipment                                             12,900

Dividends                                                            3,370

Rent expense                                                      7,540

Accounts payable                                                                    12,900

Common stock                                                                         18,000

Engineering fees earned                                 <u>             </u>         <u> 36,000</u>

                                                                           <u>66,900</u>         <u>66,900</u>

6 0
3 years ago
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