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Fofino [41]
3 years ago
15

Question 7 (10 points) A company received cash sales of $15000. They also collected $43000 in receivables during the month. Answ

er questions 4 to 6 with this information. 6. If the sales received were all made by credit cards with a fee of 1.25%, what would be the journal entry for cash? Question 7 options: 187.50 Credit 187.50 Debit 14,821.50 Credit 14,821.50 Debit
Business
1 answer:
MrMuchimi3 years ago
7 0

Answer: Debit 14,821.50

Explanation:

The following information can be gotten from the question:

Cash sales = $15000

Receivables = $43000

Since the sales received were all made by credit cards with a fee of 1.25%, the journal entry for cash will be calculated as:

= $15000 - (1.25% × $15000)

= $15000 - (0.0125 × $15000)

= $15000 - $187.50

= $14812.50

The journal entry for cash will be a debit of $14812.50

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Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b
N76 [4]

Answer:

Adjusted balance = $23,387

Explanation:

                    Franklin Company

        Bank Reconciliation statement

Bank balance as of August 31                 $21,837

Add: Deposit in transit          <u>                   $ 7,350</u>

                                                                 $29,187

<u>Less: Outstanding check                        $(5,800)</u>

Adjusted cash balance                          $23,387

Cash balance as of August 31                $22,662

Add: Collection of Note receivable     <u>   $     870</u>

                                                                 $23,532

<u>Less: Bank service charge                      $(    145)</u>

Adjusted cash balance                          $23,387

6 0
3 years ago
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
2 years ago
Misconduct in research or scholarship includes fabrication, falsification, or plagiarism in proposing, performing, reviewing, or
Sever21 [200]

Answer:

Recording data.

Explanation:

7 0
3 years ago
What effect will the increase in electricity price have on the manufacture industry output?
irina [24]
It will cause the price of whatever said company is manufacturing to go up to cover the extra expense. This may also invoke a decline in sales due to higher prices.
5 0
3 years ago
A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's p
jeyben [28]

Answer: Her actions are inconsistent with the advice being given to her clients and this must be disclosed

Explanation:

Since the registered investment adviser often recommends real estate limited partnership investments to her wealthy clients but she never buys limited partnership units for her personal account.

This shows that her actions are inconsistent with the advice being given to her clients and this must be disclosed.

5 0
2 years ago
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