Insurance Reading Quiz

On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the

Illusion [34]

Answer:

The journal entry that is to be recorded on May 1 is shown below:

Explanation:

May 1

The first entry to be posted:

Accounts Receivable A/c...................Dr $5,800

Sales A/c............................................Cr $5,800

As the company made a sale, so the sale is credited and it made against the accounts receivable. Therefore, accounts receivable account is credited.

The second entry to be posted is as:

Costs of goods sold A/c....................Dr $4,000

Merchandise inventory A/c...................Cr $4,000

The cost of the goods sold amounts to $4,000. So, the account of COGS is debited and it is against the inventory. Therefore, the merchandise inventory is credited.

8 0

3 years ago

A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number

Grace [21]

A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be 120,000 shares.

Stocks are gadgets of fair ownership in an agency. For a few businesses, shares exist as an economic asset providing for an identical distribution of any residual profits, if any are declared, in the shape of dividends.

In monetary markets, a share is a unit used in mutual finances, limited partnerships, and real estate funding trusts. Percentage capital refers to all of the stocks of an agency. The owner of shares within the agency is a shareholder of the business enterprise.

A share is referred to as a unit of possession that represents the same share of a business enterprise's capital. A percentage entitles the shareholders to an equal declaration of earnings and losses of the employer. There are majorly sorts of shares i.e. equity stocks and desire stocks.

Learn more about shares here brainly.com/question/25630152

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3 0

1 year ago

A customer asks Roger a question about a product, and he isn't sure of the correct answer. He immediately phones his supervisor

Vikentia [17]

Answer:

Roger used the technique of "responding to every concern by the customer" for building positive customer relations.

Explanation:

Building up strong customer relationships includes following techniques:

Communication which means inquiring customer needs and wants, listening to them, providing them information.
Exceeding Customer Expectations
Providing Value in the form of quality products and services
Responding to every concern which means taking each and every question, doubts or concerns of a customer seriously and providing them with the required information.

In the given case, the moment Roger knew that he wasn't sure of the information asked for, he immediately rang up his superior to get the exact correct information so as not to disappoint the customer.

This technique relates to responding to every concern by a customer.

5 0

3 years ago

A firm agreed to pay its workers $2525 an hour in 2016 and $4141 an hour in 2017. The price level for these years was 241 in 2

NemiM [27]

Answer:

(a) 10.4%; 16.73%

(b) 6.33%

Explanation:

Given that,

Wages paid to the workers in 2016 = $25 per hour

Price level in 2016 = 241

Wages paid to the workers in 2017 = $41 per hour

Price level in 2017 = 245

Real wage rate in 2016:

= (Nominal wages ÷ Price level) × 100

= ($25 ÷ 241) × 100

= 0.104 × 100

= 10.4%

Real wage rate in 2017:

= (Nominal wages ÷ Price level) × 100

= ($41 ÷ 245) × 100

= 0.1673 × 100

= 16.73%

Therefore, the real wage increase received by these workers in 2017 is calculated as follows:

= Real wage rate in 2017 - Real wage rate in 2016

= 16.73% - 10.4%

= 6.33%

Hence, these workers do get a raise between the two years.

8 0

2 years ago

Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investme

Nady [450]

Answer:

6.1%

Explanation:

As per given data

Proposal X Proposal Y

Investment $900,000 $488,000

Useful life 9 years 9 years

Annual net cash inflows for 9 years $130,000 $84,000

Residual value $42,000 $0

Depreciation method Straight-line Straight-line

Required rate of return 15% 12%

Accounting rate of return is the ratio of average net income of a project and the average investment made in the project.

Accounting rate of return = Average Net income / Average Investment

As net cash inflows are given we need to deduct the depreciation from the cash flows to arrive at the net income for the period. As all cash flows are constant so, the average value will be equal to the single years value.

Average net income = Net cash inflows - Depreciation = Net cash inflows - ( Cost of Asset - Residual value ) / Useful life of asset = $84,000 - ( $488,000 - $0) / 9 = $84,000 - $54,222 = $29,778

Average Investment = $488,000

Placing Values in the formula

Accounting rate of return = $29,778 / $488,000 = 6.1%

5 0

3 years ago