Answer:
$1,037
Explanation:
Allowance for doubtful accounts is a contra asset account that must have a credit balance since it reduces the value of accounts receivable. In this case, since the account had a debit balance of $198, and the ending balance of the account should be $839, then we must credit = $839 + $198 = $1,037
The adjusting entry should be:
December 31, adjusting entry allowance for doubtful accounts
Dr Bad debt expense 1,037
Cr Allowance for doubtful accounts 1,037
I assume there are choices here, but these companies want to limit cheap imports to ensure they are making high profit margins by maintaining a high price.
Answer:
Compensation expense of $510,000 will be recorded each year 2021-2024
Explanation:
Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.
Compensation expense of $510,000 will be recorded each year 2021-2024
All the working is made in an MS Excel file and answer is made accordingly. Please find it.
Answer:
$32,183.77
Explanation:
The value of her investment at the end of the 40th year will be equal to the accumulated sum pf the monthly payment compounded at the 7% rate of return.
This is given as follows:
FV = A × (1 -(1+r)^(-n))/r
A- monthly payment, r- monthly interest rate, n- number of months
A- 200, r- 7%/12 =0.583%, n = 40 × 12 = 480
FV = 200× (1- (1.00583)^(-480))/0.00583
=32,183.767
= $32,183.77
Answer:
Two Different MMMFs
The tax rate to produce identical yields is 16.67%
Explanation:
For Fund A & B to produce identical yields:
Fund's A yield of 5% must equal Fund B's 6% (1 - 0.28).
Therefore, 5% = 6% (1 - tax rate)
Let (1 - tax rate) be x.
That is 0.05 = 0.06x
x = 0.05/0.06 = 0.8333
Therefore, (1 - tax rate) = 0.8333
Tax rate = 1 - 0.8333
Tax rate = 0.1667
<u>Check: if 5% = 6% (1 - tax rate)</u>
0.05 = 0.06 (1 - 0.1667)
0.05 = 0.049998
0.05 = 0.05
The above calculation shows that if Fund B is taxed at 16.67% instead of 28%, it would have identical yields with Fund A.
