Paid $1,300 towards principal of the notes payable<br> What is the credit and debit for this?

In 2018, its first year of operations, Kimble Corp. has a $740,000 net operating loss when the tax rate is 35%. In 2019, Kimble

ivanzaharov [21]

Answer:

Explanation:

The journal entries are shown below:

a) Deferred tax asset A/c Dr $259,000 ($740,000 × 35%)

To benefit due to loss carry forward $259,000

(Being recording of the carry forward amount is done)

Benefit due to loss carry forward A/c Dr $259,000

To allowance to reduce deferred tax to expected realizable value $259,000

(Being allowance amount is recorded)

b) Income tax expense A/c Dr. $101,500 ($290000 × 35%)

To Deferred Tax Asset A/c $101,500

(Being recording of current tax and deferred tax is done)

Allowance to reduce deferred tax to expected realizable value Dr $101,500

To benefit due to loss carry forward $101,500

(Being allowance eliminated and carry forward loss is recorded)

5 0

4 years ago

At its peak at the end of 1999, Microsoft had a market cap of $600B. PC sales were booming and most PCs ran on Microsoft softwar

Slav-nsk [51]

Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.

Explanation:

Market Cap = P/E ratio * Earnings

Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.

For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.

If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.

6 0

3 years ago

The current sections of Birmingham Inc.â€™s balance sheets at December 31, 2019 and 2020, are presented here. Birminghamâ€™s net

jekas [21]

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense 25,000

amortization expense 10,000

gain on disposal <u> (7,000) </u>

Adjusted Income 221,000

Change in Working Capital:

Increase in A/R (27,000)

Decreasein Inv 17,000

Increase in Prepaid (5,000)

Increase Accrued /P 11,000

Decreasein A/P (6,000)

Change In Working Capital (10,000)

From Operating Activities 211,000

Investing

Sale of Equipment 47,000

Financing

Bonds Issued 60,000

Cash Flow 318,000

Beginning Cash 99,000

Cash Flow 318,000

Ending Cash 417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0

3 years ago

1) The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the f

Olenka [21]

Answer:The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?

Explanation:

5 0

3 years ago

What does s1 stand for in the formula to calculate moving averages?

elena-14-01-66 [18.8K]

In medical terms it would be the first sacral vertebra through the fifth sacral vertebra

4 0

3 years ago

Paid $1,300 towards principal of the notes payable What is the credit and debit for this?