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creativ13 [48]
2 years ago
10

The City of Willows is preparing its government-wide financial statements from its fund financial statements. The City records D

eferred Revenue with a book value of $3,500 and Compensated Absences of $1,000 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $500 and $150, respectively. What reconciliation entries must the City include in its government-wide financial statements relating to Deferred Revenues and Compensated Absences
Business
1 answer:
brilliants [131]2 years ago
4 0

Answer:

The City of Willows

Reconciliation Entries:

Debit Cash $500

Credit Deferred Revenue $500

To record the increase of deferred revenue.

Debit Compensated Absences Expense $150

Credit Compensated Absences Liability $150

To record the increase of compensated absences.

Explanation:

a) Data and Calculations:

Beginning balances:

Deferred Revenue = $3,500

Compensated Absences Liability  = $1,000

Increases during the year:

Deferred Revenue = $500

Compensated Absences = $150

Reconciliation Entries:

Cash will increase by $500 and Deferred Revenue will increase by $500

Expenses will increase by $150 and Compensated Absences (Liability) will increase by $150.

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Land originally purchased for $28,390 is sold for $74,057 in cash. What is the effect of the sale on the accounting equation
Elodia [21]

There is no effect on the accounting equation.

<h3>What is accounting equation?</h3>

Accounting equation is the one which states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity.

Assets = owner's equity + liability

The above means that land is not depreciated, therefore assets decrease (-land) but also increase (+cash).

The elements of accounting equation are :

  • Assets
  • Liabilities
  • Shareholders' equity.

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8 0
2 years ago
True or false: the term economic investment includes purchasing stocks, bonds, and real estate.
Lapatulllka [165]
False because it doesnt invest the stocks
6 0
2 years ago
Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capit
svp [43]

Answer:

WACC = 11.45 %

Explanation:

Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund

WACC = (Wd×Kd) + (We×Ke) + (Wp × Kp)

After-tax cost of debt = Before tax cost of debt× (1-tax rate)

Kd-After-tax cost of debt = 11.1%(1-0.4) =6.66%

Ke-Cost of equity = 14.7%

Kp= Cost of preferred stock = 12.2%

Wd-Weight of debt =100/270=0.370

We-Weight of equity = 140/270=0.518

Wp= weight of preferred stock = 30/270=0.111

WACC = (0.518× 14.7%) + (0.370 × 6.7%) + (0.111×12.2) =  11.447%

WACC = 11.45 %

6 0
2 years ago
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin
Marat540 [252]

Answer:

a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)

b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)

c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)

d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)

Explanation:

Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:

- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.

- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.

- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt

3 0
2 years ago
Licensee mike was owed a commission from seller jane. jane has refused to make payment. what recourse does licensee mike have?
Westkost [7]

Licensee mike was owed a commission from seller jane. jane has refused to make payment. The recourse licensee mike has is he can seek damages from his broker.

A sales commission is typically an amount paid to an employee upon completion of a task for the sale of a specified quantity of goods or services. Employers sometimes use sales commissions as an incentive to increase employee productivity. Commissions may be paid in addition to or in lieu of salary.

Commission-based compensation benefits employees because they are ultimately in control of their income. In many ways, when a company uses commission payments, it doesn't limit an employee's potential to increase their income. Jobs that typically earn commissions include:

Learn more about commission here:brainly.com/question/25169847

#SPJ4

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