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2 years ago

Ntex Ltd. issued 10,000, 10% Debentures of Rs.100 each at a premium of

Business

1 answer:

Bess [88]2 years ago

7 0

Answer:

1. When the application money is reieved, Debit Bank for Rs.1,100,000; and Credit Debentures Application and Allotment a/c for Rs.1,100,000,

2. To transfer of application money along with premium on debentures allotted to the debentures account, Debit Debentures Application and Allotment a/c for Rs.1,100,000; Debit Debenture a/c for Rs.1,000,000; and Credit Security Premium Reserve a/c for Rs.100,000.

Explanation:

Since allotment were made, it implies the accounts for application and allotment can be combined. Therefore, the journal entries will look as follows:

Accounts Title Dr (Rs.) Cr (Rs.)

Bank (w.1) 1,100,000

Debentures Application and Allotment a/c 1,100,000

(To record the amount received from debenture application with the premium)

Debentures Application and Allotment a/c 1,100,000

Debenture a/c (w.2) 1,000,000

Security Premium Reserve a/c (w.3) 100,000

(To record the transfer of application money along with premium on debentures allotted to the debentures account)

Working:

w.1: Bank = (Units of debentures * Unit price) * (1 + Premium rate) = (10,000 * Rs.100) * (1 + 10%) = Rs. 1,100,000

w.2. Debenture = Units of debentures * Unit price = 10,000 * Rs.100 = Rs.1,000,000

w.3 Security Premium Reserve = Debenture * Premium rate = Rs.1,000,000 * 10% = Rs.100,000

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Landon jewelers uses the perpetual inventory system. on april 2, landon sold merchandise with a cost of $2,500 for $7,000 to

german

Answer:

Dr Cash $6,790

Dr Sales discount $210

Cr Accounts Receivable $7,000

Explanation:

Cost of goods sold by Landon Jewelers is $7,000

The cost is subject to 3/15, n/30 meaning that 3% will discount will be applicable if payment is made in 15 days. Where the balance is not paid within 15 days, it must however be paid within 30 days.

Since payment was made to Landon Jewelers within the 15 days grace, 3% deduction will be applicable to the payment.

Therefore Sales discount would be ;

= $7,000 × 3%

=$210

Balance paid in cash would be;

=$7,000 - $210

=$6,790

Journal entry for cost of goods sold would be;

Dr Cash $6,790

Dr Sales discount $210

Cr Accounts Receivable $7,000

Sales discount is an expense hence debited while the whole amount is credited to accounts receivable.

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3 years ago

Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. So

soldier1979 [14.2K]

Answer:

The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

Explanation:

Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.

Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.

Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price, should show up and offer their cheaper services.

Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.

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2 years ago

Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual

GenaCL600 [577]

Answer:

$3,160

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset .

Given that Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual value of $3,300,

Annual depreciation

= ($28,300 - $3,300)/10

= $2,500

At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300,

Net book value at the beginning of the eighth year (before overhauling)

= $28,300 - 7($2,500)

= $10,800

Capitalizing the overhaul cost,

Net book value at the beginning of the eighth year (after overhauling)

= $10,800 + $8,300

= $19,100

Given that the total estimated useful life was changed to 12 years with the residual value unchanged,

Depreciation for the eighth year

= ($19,100 - $3,300)/5

= $15,800/5

= $3,160

7 0

3 years ago

If 20 percent increase in the price of a good leads to a 60 percent decrease in the quantity demanded, then what is the price el

sp2606 [1]

Answer:

Demand is elastic

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

60 / 20 = 3

Demand is elastic because the coefficient of elasticity is greater than 3.

This means that a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

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3 years ago

Piedmont Company segments its business into two regions - North and South.

Anna35 [415]

Answer:

1. Company-wide break-even point in dollar sales:

Break even point in dollar sales = (Traceable fixed expenses + Common fixed expenses) / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 240,000 / 800,000 * 100%

= 30%

Break even point in dollar sales :

= (122,000 + 52,000) / 30%

= $580,000

2. Break-even point in dollar sales for the North region.

Break even point in dollar sales = Traceable fixed costs / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 120,000 / 600,000 * 100%

= 20%

Break even point in dollar sales :

= 61,000 / 20%

= $305,000

3. Break-even point in dollar sales for the South region.

Break even point in dollar sales = Traceable fixed costs / Contribution margin %

Contribution margin % = Contribution margin / Sales revenue * 100%

= 120,000 / 200,000 * 100%

= 60%

Break even point in dollar sales :

= 61,000 / 60%

= $101,666.67

5 0

2 years ago