In what order must the three key financial statements be prepared?

Select the correct answer.

evablogger [386]

Answer:

с. Purchases and Creditors

<u>Multiple choices</u>

A. Goods and Cash

В.Goods and Creditors

с. Purchases and Creditors

D.Purchases and Cash

Explanation:

The purchase account is used to record purchased goods. Accountants and bookkeepers usually do not operate a goods account. When goods are purchased, they increase the purchases account.

Purchased goods are either paid in cash or on credit. Cash purchases reduce cash held in the business and are recorded in the cash account. Credit purchases increase liabilities and are recorded in the creditor's accounts.

4 0

2 years ago

Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single

gladu [14]

Answer:

Consider the following calculations

Explanation:

This 2-step mortgage problem requires a 2-step solution.

To solve for the PMT for the last 23 years of the loan, we first need to know what the principal is at the end of the 7th year.

Thus, step I uses the initial info to solve for the PMT for each month of the first 7 years. N=360, I/Y=5(%)/12 = 0.416667(%), PV=150,000, => PMT = 805.

The discount rate will change to 5% index rate plus 2% margin = 7% at the beginning of the 8th year.

In Step II we first determine the remaining balance at the end of year 7. This requires using the amortization worksheet.

On the TI BA II Plus, AMORT is the secondary function of PV.

Set P1, the periods at which the calculations begin, equal to 1. We cursor down to P2, which is the last period of the calculation, and set it equal to 84. Cursoring down once again, we see that BAL at month 84 = 131,917.52.

Going back to the TVM row, we set PV remaining at the end of 23 years = 131,917.52. I/Y is calcluated as 5(%) index rate plus 2(%) margin =7%; dividing 7(%) by 12 = 0.583333(%). N=360-84 = 276 months left.

Finally, we solve for PMT = 962.89.

7 0

3 years ago

A binding price ceiling on apartments (effective rent control) will:

My name is Ann [436]

Answer:

D) cause the quantity demanded to exceed the quantity supplied of rental housing.

Explanation:

A price ceiling is a binding government regulation in which it puts a cap on the price landlords can charge tenants to rent their properties. If this happens, there could be a rapid significant increase in the demand of apartments. This would lead to excess demand that the existing supply cannot meet , creating a shortage. The property owners may also choose to not rent their apartment at that lower price driving the supply even lower.

4 0

2 years ago

Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January

Rainbow [258]

Answer:

Tyler Financial Services

1. Journal Entries:

January 1, 2014:

Debit Cash $10,500

Unearned Service Revenue $10,500

To record cash collected for unearned services.

December 31, 2014:

Debit Unearned Service Revenue $10,500

Credit Service Revenue $10,500

To record the earned service revenue for the year.

January 1, 2015:

Debit Cash $10,500

Unearned Service Revenue $10,500

To record cash collected for unearned services.

December 31, 2015:

Debit Unearned Service Revenue $10,500

Credit Service Revenue $10,500

To record the earned service revenue for the year.

2. Journal Entries:

January 1, 2016:

Debit Cash $30,400

Unearned Service Revenue $30,400

To record cash collected for unearned services.

December 31, 2016:

Debit Unearned Service Revenue $9,800

Credit Service Revenue $9,800

To record the earned service revenue for the year.

Explanation:

a) Data and Calculations:

Annual contract fee = $10,500 in 2014 and 2015

Modified contract fee = $9,800 in 2016

Additional fee from year 3 = $20,600 for 3 more years ($6,867 each year) from 2017 to 2019

b) Cash received ($30,400) on January 1, 2016 includes the $9,800 for 2016 and the $20,600 for the years 2017 to 2019.

8 0

2 years ago

Benefits can represent more than ______ of the employer's total payroll costs. a. 28 percent b. 7 percent c. 66 percent d. 12 pe

gtnhenbr [62]

Answer:

b. 7 percent

Explanation:

Benefits here means the statutory benefits that the employees have a right to receive. These on the legal terms are the requirements, as the employer is required to contribute around 7.65% of the salary paid to the employee towards benefits of social security and Medicare.

This clearly is the standard set for the payroll. Now this also provides for the minimum contributions, thus it provides that at-least these are to be made.

Thus, each employer when making a standard salary shall contribute more than 7% towards the benefits of the employees.

4 0

2 years ago