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2 years ago

Consider the following transactions for Huskies Insurance Company:

Business

1 answer:

PilotLPTM [1.2K]2 years ago

6 0

Answer:

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

31-Dec

Dr Interest receivable $1,750

Cr Interest revenue $1,750

31-Dec

Dr Deferred Revenue $4,000

Cr Revenue or Service Revenue $4,000

Explanation:

Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

(Being to adjust 12 month depreciation)

31-Dec

Dr Interest receivable ($50,000 x 7% x 6/12) $1,750

Cr Interest revenue $1,750

(Being to adjust 6 month interest revenue accrued)

31-Dec

Dr Deferred Revenue ($16,000 x 3/12) $4,000

Cr Revenue or Service Revenue $4,000

(Being to record earned revenue for 3 months)

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Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.

marysya [2.9K]

Answer:

Allied Merchandisers

Journal Entries:

May 3 Debit Inventory $22,000

Credit Cash $22,000

To record the purchase of goods for cash.

May 5 Debit Accounts receivable (Macy Co.) $15,000

Credit Sales revenue $15,000

To record the sale of goods on credit, terms 2/10, n/60.

Debit Cost of goods sold $11,000

Credit Inventory $11,000

To record the cost of goods sold.

May 7 Debit Sales Returns $1,500

Credit Accounts receivable (Macy Co.) $1,500

To record the return of 100 units.

Debit Inventory $1,100

Credit Cost of goods sold $1,100

To record the cost of goods returned.

May 8 Debit Sales Allowances $700

Credit Accounts receivable (Macy Co.) $700

To record the sales allowance given.

May 15 Debit Cash $12,544

Debit Cash Discounts $256

Credit Accounts receivable (Macy Co.) $12,800

To record the receipt of cash for full settlement of account.

Explanation:

a) Data and Analysis:

May 3 Inventory $22,000 Cash $22,000

May 5 Accounts receivable (Macy Co.) $15,000 Sales revenue $15,000 terms 2/10, n/60.

Cost of goods sold $11,000 Inventory $11,000

May 7 Sales Returns $1,500 Accounts receivable (Macy Co.) $1,500

Inventory $1,100 Cost of goods sold $1,100

May 8 Sales Allowances $700 Accounts receivable (Macy Co.) $700

May 15 Cash $12,544 Cash Discounts $256 Accounts receivable (Macy Co.) $12,800

8 0

3 years ago

3. The Johnson Company will pay an annual dividend of $2.05 next year. The company has increased its dividend by 3.5% a year for

vlada-n [284]

Answer:

A share of this stock be worth$ 21.88 four years from now

Explanation:

Amount of annual dividend that will be paid the next year = $ 2.05

increase in dividend by 3.5% = $\frac{100+3.5}{100}$ = increase by a factor of 1.035

Since there is a 14% return, overall increase in dividend = $\frac{1.035}{0.14 - 0.035}$ = 9.857

Note:

0.035 was obtained from $\frac{3.5}{100}$ = 0.035 (dividend increase)

0.14 was obtained from $\frac{1.4}{100}$ = 0.14 (percentage return required)

over the next 20 years his new value of dividend will be

New value of dividend = $2.05 + 9.857 = 11.907

Converting to a percentage,

$\frac{100+11.907}{100}$ = 1.1907

Net dividend increase =

Dividend returns minus increase in dividend for 20 years is given as

14% - 3.5% = 10.5%

From the above, the

Worth of a share of his stock 4 years from now can be computed by

(dividend X Percentage increase in 20 years)/ net percent dividend increase + (increase in 4 years/ net dividend increase) X 100

$\frac{(2.05 (1.1907)) }{10.5}$ + $\frac{(2.2729)}{10.5}$ × 100 =$21.88

∴ A share of this stock be worth$ 21.88 four years from now

4 0

3 years ago

Which one of the following specialists is the general cashier who must have a complete understanding of the Explanation of Benef

scoray [572]

Answer:

The correct answer is letter "D": Payment poster.

Explanation:

Payment posters are employees in charge of handling the payment systems for medical assistance. Among their duties, payment posters process payments for patients whether in cash or electronically and must have a wide knowledge of how insurances work in regards to benefits and refund requests.

4 0

3 years ago

True Vibgyor Inc. sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have

larisa86 [58]

Answer:

D. Razor -Razor -blade

Explanation:

A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.

True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.

Hence the answer is D. Razor -Razor -blade

8 0

3 years ago

When calculating tax revenue calculate the area between the total price paid by blank and the net price received by blank from z

MrRissso [65]

Answer:

consumers; suppliers

Explanation:

Tax revenue is defined as the revenues collected from taxes on various different types of incomes. When calculating tax revenue calculate the area between the total price paid by consumers and the net price received by suppliers from zero to the quantity traded. This will provide the final tax revenue for the company.

8 0

3 years ago