For calculating the replacement value of the house the insurance company keeps in mind few things like the location of the house, year of construction, the up-gradation and the type of gradation.
<u>Explanation:</u>
These are some of the factors insurance companies take into account when calculating the replacement value of a home:
Location of the home, Year of construction, Year of last major upgrades, Types of upgrades, Total square footage of the home, Foundation and building materials for the home.
The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the occurrence of an insured event (e.g., fire or flood) unless the homeowner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
Answer:
$10,070
Explanation:
The true cash balance is the balance having considered the effect of the transactions that have happened but are yet to be captured in the books.
Reviewing the transactions,
- bank service charges of $50 - This will be deducted from the book balance
- Two credit memos are included in the bank statement: one for $940, which represents a collection that the bank made for Owen, and one for $60, which represents the amount of interest that Owen had earned on its interest-bearing account in June - Both will be added to the book balance
Hence the true cash balance
= $9,120 - $50 + $940 + $60
= $10,070
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $51.75 (3 Million × $17.25)
To Paid-in capital in excess of par value A/c $51.60
To Common shares A/c $0.15 (3 Million × 0.05)
(Being the sale of shares is made)
The remaining balance is credited to the Paid-in capital in excess of par value i.e $51.60 ($51.75 - $0.15)
All the amounts are in million
Answer:
a.Building (Dr.) $145
Equipment (Dr.) $260
Cash (Cr.) $404
Long-term note (Cr.) $30
b. Cash (Dr.) $340
Common Stock (Cr.) $180
Share Premium (Cr.) $160
c.Retained Earnings (Dr.) $145
Dividend Payable (Cr.) $145
d.Short-term investment(Dr.) $7716
Cash (Cr.) $7716
e. No Effect on accounting equation or Canon Sporting Goods Accounts.
f. Cash (Dr.) $4313
Short-term Investment (Cr.) $4313
Explanation:
a. Non-current Asset is increase by $434 and Current Assets cash account decreased by $404, Non-current liability is increased by $30.
b. Cash received debited which increases current asset by $340 and common stock account increased by $180, Share premium account increased by $160 under the stockholder account.
c. Dividends are paid from retained earnings on the equity account of the balance sheet. No effect on the assets. Retained earnings are decreased (stockholder account) and dividend payable is increased (current liability account).
d. Both are current asset accounts. Short-term investment account is increased and cash is decreased by $7716.
e. There will be no effect on the accounts of Canon Sporting Goods as the transaction occurred between two outside investors.
f. Both are current asset accounts. Cash is increased and short term investment is decreased by the $4313.
The answer is: TRUE .
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