Answer:
The journal entries are as follows:
(i) On January 1,
Petty cash A/c Dr. $200
To cash A/c $200
(To record the fund)
(ii) On January 8,
Postage A/c Dr. $44
Transportation-in A/c Dr. $12
Delivery expenses A/c Dr. $14
Miscellaneous expenses A/c Dr. $33
To cash $103
(To record the reimburse expenses)
(iii) On January 8,
Petty cash A/c Dr. $50
To cash A/c $50
(To record the increases petty cash fund)
Answer:
It lowers the chance of bankruptcy because dividend for stock are not required payments, but interest expenses for bonds are required payments.
Explanation:
When a comp[any issues additional stock instead of issuing bonds to obtain long term funds, the implications are:
- Dividend payment on stock is optional payment as in the event of company incurring losses, no dividend is required to be paid. Such is not the case with bonds wherein a company must pay interest on debt irrespective of it's profitability or situation of financial crunch.
- Bonds impose restrictions on the issuer such as restriction on payment of dividend, restriction on issue of additional debt or making cash expenditure. Such is not the case with issue of common stock which doesn't impose such restrictions.
- Issue of Bonds hampers a company's credit ratings which is necessary for obtaining funds in the future. Such is not the case with issue of common stock.
- But, dividend paid to stockholders isn't a tax deductible expense unlike Interest on debt which is tax deductible
<span>In a channel arrangement, two or more companies at one level join together to follow a new marketing opportunity.
When a company has a channel arraignment it allows for new marketing strategies and tactics. In this situation, companies are going in together at the same level with the same power to accomplish new opportunities and goals together. </span>
Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Replacement rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance.
Insurance refers to a type of risk management in which the insurer provides the insured with protection from risks of all kinds - financial, health, accidental, etc.
The insured is also called the policyholder, and he makes a payment called premium to be insured. If the specified event for which the insurance cover is provided takes place, the insurer is bound to compensate the insured financially.
A replacement rule delineates the process in which the premium payments on existing policy is discontinued or forfeited, and a new policy is purchased.
To learn more about the replacement rule: brainly.com/question/27922977
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