Answer:
A. investors
Explanation:
Essentially there are two users who need the accounting information
1. External users: External users are users outside the enterprise. It includes suppliers, clients, government agencies, investors, financial institutions, etc
2. Internal users: The users within the business entity are the internal users. It includes proprietors, employees, managers, supervisors, etc
Thus accounting information is required for all users
Answer:
Dr Notes Payable account 600
Dr Interest Expense account 5
Cr Cash account 605
Explanation:
The total interest due = $600 x 10% x 1/12 =$5
Notes payable is a liability account and it decreases, so it should be debited.
All expenses are debited.
Cash is an asset account and it decreases, so it should be credited.
Answer:
$1.56
Explanation:
Lets assume the dividend paid for year zero is $1. The growth for the first 3 years is 25% which is given in the question. Now we will find the value of the Projected dividend for year 2 using the compounding formula, as under:
The Projected dividend for year 1 = $1 * (1 + 25%)^ 2 years = $1.56
Answer:
a. Provide the journal entry for the vacation pay
Debit Vacation and Holiday expense $49,000
Credit Vacation and Holiday payable $49,000
<em>(To record earned Vacation and Holiday expenses)</em>
b. Provide the journal entry for the pension benefit
Debit Pension expense $30,000
Credit Pension liability $30,000
<em>(Being pension benefit recognition)</em>
Explanation:
- The earned vacation and holiday expense has to be recognized in line with the accrual principle of accounting.
- The pension benefit was also recognized in line with the accrual principle of account. The pension plan is a contribution of 6% of employee salaries, which amounted to $500,000. So, 0.06 x 500,000 = $30,000.
Answer:
A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits.