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3 years ago

Indicate the account being debited:

Business

1 answer:

kherson [118]3 years ago

3 0

Answer:

C.)M. Russo, Withdrawals

Explanation:

The drawing account is a contra account entry used to record and track the money withdrawn by owners for personal use. Drawing reduces the amount of cash( asset) available to the business.

Because cash -asset is reducing by 500, we credit cash by $500 and debit the drawing contra entry account by 500. M. Russo, Withdrawals is the debit account.

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Pina Corporation entered into an operating lease agreement to lease equipment from Badger, Inc. on January 1, 2017. The lease ca

posledela

Answer:

= $80,273

Explanation:

Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease

= $82,773 -$ 6,000 + $3,000 + $500

=$80,273

4 0

2 years ago

Consider a portfolio of stocks X, Y, Z whose returns in various economic conditions are set forth below.

jeka57 [31]

Answer:

The expected return is 10.95%

Explanation:

CALCULATE THE EXPECTED RETURN OF X

State _____Probability __X_____Expected return

Boom ____ 0.25 ______22% ___5.50%

Normal ___ 0.60 ______15% ___ 9.00%

Recession _0.15 _______5% ___ 0.75%

Total ______________________15.25%

CALCULATE THE EXPECTED RETURN OF Y

State _____Probability __Y_____Expected return

Boom ____ 0.25 ______10% ___ 2.50%

Normal ___ 0.60 ______9% ____5.40%

Recession _0.15 _______8% ___ 1.20%

Total ______________________9.10%

Now calculate the weighted average return based on investment in each portfolio

Expected return = ( Expected return of Assets X x Weight of Asset X ) + ( Expected return of Assets Y x Weight of Asset Y )

Expected return = ( 15.25% x $3000/$10000 ) + ( 9.10% x $7000/$10000 )

Expected return = 4.575% + 6.370%

Expected return = 10.945%

Expected return = 10.95%

5 0

3 years ago

In 2019, the CEO of Crimson, Inc., entertains seven clients at a skybox in Memorial Stadium for a single athletic event during t

hram777 [196]

Answer:

Crimson may not be able to deduct any of the cost incurred. In other words these expenses are inadmissible.

Explanation:

As per scenario given in the above question, Crimson Inc., may not be able to deduct any cost which is incurred related to the entertainment expenses because many changes has been made in the tax cuts and Jobs act,2017. These changes does not allowed deduction of the entertainment and business meals expenses.

In the year 2018, the entertainment expenses could not be deducted according to the tax laws applicable on the companies. Thus, the costs will not be deducted.

4 0

3 years ago

Delta Corporation has a bond issue outstanding with an annual coupon rate of 7% and 20 years remaining until maturity. The par v

denpristay [2]

Answer:

Current yield is 10.3%

Explanation:

Coupon payment = 1000 x 7% = $70 annually

Number of periods = n = 20 years

Yield to maturity = 11% annually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $70 x [ ( 1 - ( 1 + 11% )^-20 ) / 11% ] + [ $1,000 / ( 1 + 11% )^20 ]

Price of the Bond = $557.43 + $124.03 = $681.46

Current yield is the ration of coupon payment to the price of the bond.

Current Yield = Coupon Payment / Price of Bond = $70 / 681.46 = 0.1027 = 10.3%

5 0

3 years ago

The average price of homes sold in the U.S. in 2012 was $240,000. A sample of 144 homes sold in Chattanooga in 2012 showed an av

Ainat [17]

Answer:

H0 : Average price of homes sold in US = 24000 ; H1 : Average price of homes sold in US ≠ 24000

t calculated value = 2 , t critical (tabulated) value = 1.96

calculated t > critical t . Null Hypothesis is rejected, It is concluded that 'Average price of homes sold in US ≠ 24000 '

Explanation:

Null Hypothesis : Average price of homes sold in US = 24000

Alternate Hypothesis : Average price of homes sold in US ≠ 24000

t = (x' - u) / (s / √n)

x' = sample mean = 246000 (given)

u = population mean = 240000 (given)

s = standard deviation = 36000

n = no. of observations = 144

t = (246000 - 240000) / (36000/√144)

6000/ (36000/12000) = 6000/3000

t = 2

Critical value for a two tailed test at 5% significance level, 0.025 in t distribution = 1.96

Since calculated value, 2 > tabulated or critical value at significance level, 1.96. So, we reject the null hypothesis. This implies that 'Average price of homes sold in US ≠ 24000'

3 0

2 years ago