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stira [4]
3 years ago
15

A buyer uses a periodic inventory system, and it purchases $4,000 of merchandise on credit terms of 2/10, n/30 on December 5. On

December 15, it pays the invoice in full. Prepare the buyer's necessary journal entry for payment by selecting the account names from the drop-down menus and entering dollar amounts in the Debit and Credit columns.
Business
1 answer:
kramer3 years ago
5 0

Answer:

Explanation:

Purchase discount = $4000 * 2% = $80

Date       Accounts title                  Debit    Credit

Dec-15    Accounts Payable         $4,000

                    Purchase Discounts                $80

                    Cash                                         $3,920

               (To record payment within discount term of 10 days)

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Assume your employer offers a bonus of $7200. The only catch is that you must wait 6 years to take possession of the money. If y
a_sh-v [17]

Answer:

The minimum would be the present value of the bonus, which is 5,075.72 dollars

Explanation:

we have to discount the 7,200 dollar bonus at 6% discount rate for 6 years to get the present value of the bonus:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  7,200

time  6 years

rate  6% = 6/100 = 0.06

\frac{7200}{(1 + 0.06)^{6} } = PV  

PV   $ 5,075.7159

5 0
3 years ago
For a risk averse person, a. the pleasure of winning $1,000 on a bet exceeds the pain of losing $1,000 on a bet. b. the pain of
kompoz [17]

Answer:

B. the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet.

Explanation:

A risk averse person is an individual or person rather who prefers lower returns with known risk than higher returns with unknown or higher risks. In this case, the individual prioritizes preservation of capital at hand over the potential of a more than average return. In this scenario, for a risk averse individual, the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet based on the high uncertainty attached to winning the $1000 bet.

8 0
3 years ago
All of the following are characteristics of SMART goals except
ch4aika [34]
Without limits is not part of smart goals
5 0
3 years ago
"Y3K, Inc., has sales of $6,359, total assets of $2,975, and a debt-equity ratio of 1.10. If its return on equity is 11 percent,
gogolik [260]

Answer:

Net income of Y3K, Inc. is $155.83

Explanation:

Debt-to-equity ratio is calculated by using formula:

Debt-to-equity ratio = Total debt (or liabilities)/Total equity

Total debt (or liabilities) = Debt-to-equity ratio x Total equity  = 1.1 x Total equity

Basing on accounting equation:

Total assets = Total liabilities + Total equity  = 1.1 x Total equity + Total equity = 2.1 x Total equity

Total equity = Total assets/2.1 = $2,975/2.1

Return on equity (ROE) = Net income/Total equity

Net income = Return on equity (ROE) x Total equity = 11% x ($2,975/2.1) = $155.83

8 0
3 years ago
Wims, Inc., has current assets of $3,400, net fixed assets of $32,500, current liabilities of $2,900, and long-term debt of $6,9
ss7ja [257]

Answer:

$26,100

Explanation:

Shareholders' equity = Total asset - Total liability

Shareholders' equity = (3,400 + 32,500) - (2,900 + 6,900)

Shareholders' equity = 35,900 - 9,800

Shareholders' equity = 26,100

Hence, the value of the shareholders equity is $26,100

7 0
3 years ago
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