Answer:
Allied Merchandisers
Journal Entries
Date General Journal Debit Credit
03-May Merchandise Inventory $20,000
To Cash $20,000
05-May Accounts Receivable $21,000
To Sales $21,000
05-May Cost of goods sold $15,000
To Merchandise Inventory $15,000
07-May Sales Returns and allowances $1,750
To Accounts Receivable $1,750
07-May Merchandise Inventory $1,250
To Cost of goods sold $1,250
08-May Sales Returns and allowances $300
To Accounts Receivable $300
15-May Cash $18,571
Sales Discounts $379
($18950*2%)
To Accounts receivable $18,950
($21000-$1750-$300)
Answer:
Ordinary income of $6,000; Capital gain of $18,000
Explanation:
Calculation to determine the amount and character of his gain
First step is to calculate the The total gain on the sale of his partnership
Using this formula
Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )
Let plug in the formula
Total gain on the sale of his partnership=$28,000+$15,000+$19,000
Total gain on the sale of his partnership=$24,000
Now let determine the amount and character of his gain
The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.
Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000
Answer:
The new portfolio beta is 1.31 rounded off to two decimal places.
Explanation:
The portfolio beta is a function of the sum of the weighted average betas of the individual stock's that form up the portfolio. The portfolio beta is calculated using the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w is the weightage of each stock in the portfolio
The beta of the portfolio when one stock with a beta of 1 is sold is,
The sum of individual stock betas for 19 stocks is = 20 * 1.31 - 1 * 1 = 25.2
The new portfolio beta when one stock with a beta of 0.97 is added is,
Portfolio beta = (25.2 + 0.97) / 20
Portfolio beta = 1.3085 rounded off to 1.31
Answer:
Cash flow= $64,847
Explanation:
Giving the following information:
Sellin price= $72,376
Tax rate= 25%
Book value= $43,070
<u>First, we need to calculate the gain from the sale and the tax:</u>
Gain= 72,376 - 43,070= $29,036
Tax= gain*tax rate
Tax= 29,036*0.25= $7,259
<u>Now, we can calculate the after-tax cash flow:</u>
<u></u>
Gain= 29,036
Tax= (7,259)
Book value= 43,070
Cash flow= $64,847
Answer:
Amount after 15 years = 183255.011
Explanation:
Below is the calculation to find the amount after 15 years:
Annuity amount or early deposited amount = $5200
Time period = 15 years
Interest rate = 11.3 %
Now we have to find the amount after 15 years:
Amount after 15 years = Annuity [((1 + r)^n - 1) / r ]
Amount after 15 years = 5200 [((1 + 11.3)^15 - 1) / 11.3% ]
Amount after 15 years = 183255.011
