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3 years ago

For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance.

Business

1 answer:

Hunter-Best [27]3 years ago

6 0

Answer:

Debit effect Credit effect Normal balance

a. Bonds payable Decrease Increase Credit

b. Unearned service revenue Decrease Increase Credit

c. Depreciation expense Increase Decrease Debit

d. Common stock Decrease Increase Credit

e. Building Increase Decrease Debit

f. Rent revenue Decrease Increase Credit

All assets, expenses increase with debits and decreases with credit and have a debit normal balance. All liabilities, revenue accounts and equity accounts (except dividends) have credit.

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What grade do we learn geometry in?

sweet [91]

Answer:

grade 9

Explanation:

Because In United States approximately in 14-15 years old in elementary about goemetric shapes

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3 years ago

An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe

zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= $\frac{Contribution\ margin}{Sales}$

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

$\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}$

Thus, weighted average contribution margin would be, 60 percent

7 0

3 years ago

On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the

lord [1]

Answer:

Explanation:

a)Purchase cost - 1,180,000

Useful life - 25

Annual depreciation = 47,200

Timeline - Jan 1 , 2014 - 2019 = 6 years

Accumulated depreciation = 47200*6=283,200

Carrying value at 2019 = (1,180,000 - 283,200)= 896,800

B) Annual cash flow - 400,000

Annual cash outflow - (295,000)

Net cash inflow= 105,000

Net cash flow for 8 years = 105000*8 = 840000

Since the net cash inflow is less than the carrying value , there is an impairment.

PV value of the net cash inflow at 12% discount for 8 years = 521,602

Impairment loss = $375,198

At December 21.2019

2.) Debit impairment loss - $375,198

Credit equipment - $375,198

4 0

4 years ago

Wilson was killed in an accident while he was on the job. Mary, Wilson's wife, received several payments as a result of Wilson's

cestrela7 [59]

a. Since the three months' salary is worth $52,400, the Gross Income from this item is $52,400.

b. Wilson's accrued salary will total $12,200 in Gross Income.

c. The gross income that Mary will receive is $255,000 under the group term life insurance.

d. The gross income that Mary will receive is $397,000, despite the election too receive an annuity of $25,000 for each of the 28-year period.

<h3>What is the gross income?</h3>

The gross income is the total amount of income earned or received over a period of time by an individual/household or a company. For individuals and households, the gross income includes wages, dividends, capital gains, business income, retirement distributions, and other incomes.

Gross income is stated before allowable deductions are made to arrive at the taxable or net income.

Learn more about gross income at brainly.com/question/13793671

7 0

2 years ago

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan'

blsea [12.9K]

Answer:

Find my detailed explanations and answers below

Explanation:

Based on the dividend discount model, the share price is the present value of the expected dividend as shown by the formula below:

share price=expected dividend/(cost of equity-growth rate)

share price=$25.25

expected dividend=$1.62

cost of equity=unknown(let us assume it is K)

growth rate=8%

$25.25=$1.62/K-8%

$25.25*(K-8%)=$1.62

K-8%=($1.62/$25.25)

K=($1.62/$25.25)+8%

K=14.42%

Using the Capital Asset Pricing Model, the formula for cost of equity is as shown thus:

cost of equity=risk-free rate+beta*(market return-risk-free rate)

risk-free rate=3%

beta=0.80

,market return=14%

cost of equity=3%+0.80*(14%-3%)

cost of equity=11.80%

cost of equity=cost of debt+risk premium

cost of debt=12%

risk premium=market return-risk-free rate=14%-3%=11%

cost of equity=12%+11%=23%

If all of the figures are of equal confidence, our cost of equity should be the average of the three

cost of equity=(14.42%+11.80%+23%)/3=16.41%

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3 years ago