Answer:
Anderson Cleaning Service's liabilities were $2,160
Explanation:
Basing on accounting equation:
Total asset = Liabilities + Owner's (or Stockholders') Equity
Liabilities = Total asset - Owner's (or Stockholders') Equity
At the end of a recent year, Anderson Cleaning Service had total assets of $5,810 and equity of $3,650
Anderson Cleaning Service's liabilities = Total asset - Equity = $5,810 - $3,650 = $2,160
Answer: Proposal C
Explanation:
The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.
Proposal A.
Periodic payment of $2,000 makes this an annuity.
Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r
= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
= $103,451.12
Proposal B
Present value = Down payment + present value of annuity
= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]
= 10,000 + 93,676.70
= $103,676.70
Proposal C
Present value = Present value of annuity + Present value of future payment
= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]
= 16,435.51 + 85,999.17
= $102,434.68
<em>Proposal C has the lowest present value and so is best. </em>
Answer:
Accounts receivable $361,000 debit
Allowance for uncollectible accounts $560 debit
Net Sales $806,000 credit
0.4% of credit sales are uncollectible = 0.4% x $806,000 = $3,224
adjusting entry:
December 31, 202x
Dr Bad debt expense 3,224
Cr Allowance for doubtful accounts 3,224
Allowance for doubtful accounts is a contra asset account that reduces accounts receivable.
Answer:
$38.0 millions
Explanation:
Cash paid to suppliers of merchandise = Cost of Goods Sold + Increase in inventory - Increase in accounts payable
Therefore, we have:
Cash paid to suppliers of merchandise = $40.0 millions + $4.5 millions - $6.5 millions = $38.0 millions
Answer:
$17,500
Explanation:
Calculation of Pat's taxable gain in the year of sale using the installment sales method :
First step is to add up Land + Cash
$75,000+$25,000
=$100,000
Second step
([$100,000-$30,000)/$100,000]*$25,000
=($70,000/100,000)*$25,000
Hence:
0.7*$25,000
=$17,500
Therefore Pat's taxable gain in the year of sale using the installment sales method will be $17,500
