Answer:
B)
Explanation:
Makes the most sense considering the scenario.
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
Answer: Option C : $300; Negative $100
Linda's accounting profit = $300
Economic Profit= -$100
Explanation:
Total money generated = cost price x number of units = $100 x 10 = $1000
Profit = Total revenue generated - Cost of production = $1000 - $700 = $300
Linda's accounting profit = $300
Economic Profit = $300 - ($20 x 20hours)
Economic Profit= $300 - $400 = -$100
Answer:
6.91%
Explanation:
In this question we use the RATE formula that is shown on the attachment below:
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the rate of return is 6.91%
Answer:
(1) $322
Explanation:
(1) Pension Expense:
= Service Cost + Interest Cost - Expected rate of return + Amortization of prior service cost - Amortization of prior net gain
= $410 + (2800 × 7%) - (290 actual + 29 loss) + $45 - $10
= $410 + $196 - $319 + $45 - $10
= $322
(2) The journal entries are as follows:
(i) Pension expense A/c Dr. $322
Plan assets A/c Dr. $319
Amortization of net gain – OCI A/c Dr. $10
To Amortization of prior service-cost – OCI $45
To PBO $606
(To record pension expense)
(ii) Loss – OCI A/c Dr. $29
To plan assets $29
(To record loss on assets)
Working:
Loss on assets = {2900(11%-10%)}
= 2900 × 1%
= $29
(iii) Plan assets A/c Dr. $345
To cash $345
(To record funding)
(iv) PBO A/c Dr. $370
To plan assets $370
(To record Retiree benefits)
