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3 years ago

List at least one of each transaction related to all of the following business events:

Business

1 answer:

NeX [460]3 years ago

8 0

Answer:

a. Purchase of goods or services for cash

Transaction: Cash paid towards the dresses and shoes for security guards.

Accounts affected: Cash and Purchases

b. Providing services for cash

Transaction: Cash received against Bill raised towards Security services to M/s Major Computers for November month

Accounts affected: Cash and Service Revenues

c. Providing services on account

Transaction: Bill raised towards Security services to M/s Prime innovators for November month

Accounts affected: Accounts Receivables and Service Revenues

d. Purchase of goods or services on account

Transaction: Purchases the dresses and shoes for security guards on credit form M/s Immediate Dress.

Accounts affected: Accounts Payable and Purchases

e. Payment of a previously recorded expense

Transaction: Payment of bill raised by M/s Immediate Dress towards purchase of security guards dresses and shoes last month.

Accounts affected: Accounts Payable and Cash

f. Receipt of a previously recorded revenue earned

Transaction: Received payments towards Bill raised to M/s Prime innovators for Security services for November month

Accounts affected: Accounts Receivables and Cash

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Grouper Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $675,803. The purchase agreeme

Maslowich

Answer:

The interest rate, to the nearest percent, used in discounting this purchase transaction 8%.

Explanation:

The interest rate can be calculated using the following RATE function in Excel:

Interest rate = RATE(nper,pmt,-pv,fv,type)*n .............(1)

Where;

nper = number of periods = number of years to maturity * number of semiannual in a year = 5 * 2 = 10

pmt = semiannual payments = $63,101 = 63101

pv = present value = fair value balance = fair value - immediate down payment = $675,803 - $164,000 = $511,803 = 511803

fv = future value = desired cash balance after last payment = 0

type = when payments are due (0 = end of period. 1 = beginning of period) = 0

n = number of compounding period per year = number of semiannual in a year = 2

Substituting the values into equation (1), we have:

Interest rate = RATE(10,63101,-511803,0,0)*2 .................. (2)

Inputting =RATE(10,63101,-511803,0,0)*2 into an excel sheet (Note: as done in the attached excel file), the Interest rate is obtained as 8.00%.

Therefore, the interest rate, to the nearest percent, used in discounting this purchase transaction 8%.

Download xlsx

6 0

3 years ago

The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to

Ahat [919]

Question Completion:

Assume that Supplies were purchased during the year worth $13,000.

Record the adjusting entries.

Answer:

Adjusting Journal Entries on December 31, 2021:

Debit Interest Expense $4,000

Credit Interest payable $4,000

To record the accrued interest on the notes payable.

Debit Salaries Expense $3,000

Credit Salaries payable $3,000

To record the accrued salaries at year end.

Debit Supplies Expense $9,200

Credit Supplies $9,200

To record supplies expense for the year.

Explanation:

a) Data and Calculations:

Supplies purchased = $13,000

Supplies at year-end = 3,800

Supplies consumed = $9,200 ($13,000 - $3,800)

b) Adjusting entries are journal entries done at the end of a financial period to ensure that expenses and revenues are matched to the period they occur instead of when cash is exchanged. This accords with the accrual concept and the matching principle of accounting.

3 0

3 years ago

Match the Steps in the Compliance Program from the U.S. Sentencing Commission Guidelines. Identify the order in which the steps

uranmaximum [27]

Answer:

The following are the order in which the steps are taken in regards to the Compliance Program from the US Sentencing Commission Guidelines:

7. Establish standards and procedures.

1. Encourage employees to report violations.

6. Delegate decision-making authority only to ethical employees.

3. Improve program after violations.

2. Enforce standards consistently and fairly.

5. Train employees on standards and procedures.

4. Assign upper-level managers to be in charge.

Explanation:

6 0

3 years ago

Your retirement fund consists of a $5,000 investment in each of 18 different common stocks. The portfolio's beta is 1.10. Suppos

serg [7]

Answer: 1.13

Explanation:

New Beta = Beta + Increase in beta per portfolio

Increase in beta as a result of purchase of new stock

= New stock beta - sold stock beta

= 1.5 - 0.5

= 0.5

Increase in bet per portfolio

= 0.5/18 stock

= 0.02778

New Beta = 1.1 + 0.02778

= 1.12778

= 1.13

3 0

3 years ago

The following information is available for Carla Corporation for 2019 (its first year of operations).

Anastasy [175]

Answer:

The calculations and journal entries are shown below:

Explanation:

The computations are shown below:

a. The taxable income is

Pretax financial income $302,100

Less: Excess of tax depreciation over book depreciation -$43,800

Add: Rent received in advance deferred for book purposes $18,100

Taxable income $276,400

b. The journal entry is shown below:

Income tax expense $60,420

Deferred tax asset (20% × $18,100) $3,620

To Income tax payable (20% × $276,400) $55,280

To Deferred tax liability (20% × $43,800) $8,760

(Being the income tax expense, deferred income taxes, and income taxes payable for 2019 is recorded)

c. The journal entry is shown below:

Income tax expense $63,270

Deferred tax liability ($8760 ÷ 4 years) $2,190

To Income tax payable (20% × $309,200) $61,840

To Deferred tax asset (20% × $18,100) $3,620

(Being the income tax expense, deferred income taxes, and income taxes payable for 20 is recorded)

5 0

3 years ago