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2 years ago

What is the consumer credit act

1 answer:

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The Consumer Credit Act is protections to apply between agreements between traders and individuals, sole traders, partnerships and unincorporated associations. But not agreements made between traders and bodies.

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A hospital revenue bond issue is being underwritten on a negotiated basis. The offering consists of $100,000,000 par value of te

GenaCL600 [577]

Answer:

The syndicate member earns $20.

Explanation:

When bonds are sold directly to the public, the syndicate member earns the total takedown. Total takedown refers to the selling concession plus the additional takedown $22.00 + $20.00 = $42.00.

In this question, it indicated that a selling group was used to find customers. This means that the syndicate member will not earn the total takedown because he has given up his selling concession of $22.00 to the selling group member, leaving the syndicate member to earn only the additional takedown of $20.

3 0

2 years ago

Wells Company's delivery truck, which originally cost $70,000, was destroyed by fire. At the time of the fire, the balance of th

beks73 [17]

Answer:

D) $17,500 gain.

Explanation:

Wells Company should record the following transactions:

Dr Cash account 40,000
Dr Accumulated Depreciation Vehicles account 47,500
Cr Vehicle account 70,000
Cr Gain on Disposal account 17,500

$40,000 in cash was received and the accumulated depreciation balance should equal to zero, therefore they must be debited.

The vehicles account balance should equal zero and the rest is gain on disposal, therefore they must be credited.

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3 years ago

Documents in a voucher system

amid [387]

Answer: 1 E, 2 C, 3 A, 4 F, 5 D, 6 B

Explanation:

Purchase requisition - A document used by department managers to inform the purchasing department to place an order with a vendor.

Purchase order - A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms.

Invoice - An itemized statement of goods prepared by the vendor listing the customer's name, items sold, sales prices, and terms of sale.

Receiving report - A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of the goods.

Invoice approval - A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization.

Voucher - An internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.

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3 years ago

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,400 cash and

adelina 88 [10]

Answer:

Pose-for-Pics

1. T-accounts:

Cash

Date Account Title Debit Credit

Aug. 1 Common stock $7,400

Aug. 2 Prepaid insurance $3,000

Aug. 5 Office supplies 970

Aug. 20 Photography Fees 4,231

Aug. 31 Utilities 765

Aug. 31 Balance $6,896

Common Stock

Date Account Title Debit Credit

Aug. 1 Cash $7,400

Aug. 1 Photography equipment 34,400

Aug. 31 Balance $41,800

Photography Equipment

Date Account Title Debit Credit

Aug. 1 Common stock $34,400

Prepaid Insurance

Date Account Title Debit Credit

Aug. 1 Cash $3,000

Office Supplies

Date Account Title Debit Credit

Aug. 1 Cash $970

Photography Fees

Date Account Title Debit Credit

Aug. 20 Cash $4,231

Utilities Expense

Date Account Title Debit Credit

Aug. 31 Cash $765

2. Trial Balance

As of August 31

Account Title Debit Credit

Cash $6,896

Common stock $41,800

Equipment 34,400

Prepaid insurance 3,000

Office supplies 970

Photography fees 4,231

Utilities expense 765

Totals $46,031 $46,031

Explanation:

Before transactions are posted to the T-accounts (General Ledger) they are recorded in the General Journal. The T-accounts summarize the transactions into various ledger accounts. Periodically, the accounts are balanced and a trial balance is extracted to check if the posting is error-free.

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2 years ago

Data for Hugh’s Corporation is provided below. Hugh’s recently acquired some risky assets that caused its beta to increase by 30

I am Lyosha [343]

Answer:

The stock's new expected rate of return is 14%

Explanation:

Ke=Rf+beta(Mrp-Rf)

Ke is the cost of capital is 10.20%

Rf i the risk free rate which is unknown

beta is 1.00

(Mrp-Rf) is the market risk premium at 6%

10.20%=Rf+1.0(6%)

10.20%=Rf+6.0%

Rf=10.20-6.00%

Rf=4.20%

Beta for the risky asset is 1.00*130%=1.3

New risk rate is the old rate plus inflation rate of 2.00%

new risk free=4.2%+2%=6.2%

The expected return on the new asset is computed thus:

Ke=6.2%+1.3(6%)

Ke=6.2%+7.8%

Ke=14%

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2 years ago