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2 years ago

Match each type of adjusting entry with its definition.

Business

1 answer:

NeTakaya2 years ago

8 0

Answer and Explanation:

The matching is as follows:

1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period

2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future

3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period

4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period

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Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month.

Sergio039 [100]

Answer:

The answer is: C) There are two distinct performance obligations: the wireless service and the phone.

Explanation:

Performance obligation refers to a promise made by a company to deliver a good or service to a customer. A series of goods or services that are very similar and are transferred at the same time to a customer can be considered as one single performance obligation.

For example, the voice service and the data service are considered one single wireless service. But the cellphone is totally different so it has to be considered a separate performance obligation.

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2 years ago

The Holmes Company's currently outstanding bonds have a 8% coupon and a 13% yield to maturity. Holmes believes it could issue ne

Marina86 [1]

Answer: 8.45%

Explanation:

From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.

We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.

Holmes's after-tax cost of debt will therefore be calculated as:

= Yield to maturity × (1 - Marginal tax rate)

= 13% × (1 - 35%)

= 13% × (65%)

= 0.13 × 0.65

= 0.0845

= 8.45%

7 0

2 years ago

g "Walblue imports a desk from a French manufacturer for sale in its chain of U.S. stores. The cost of a desk to Walblue is 3,70

klasskru [66]

Answer: $3312.4

Explanation:

The exchange rate in the rate at which a currency is being converted for another currency in the foreign exchange market. From the question, we are told that Walblue imports a desk from a French manufacturer for sale in its chain of U.S. stores.and that the cost of a desk to Walblue is 3,700 euros (€).

The dollar cost of one of these desks if the exchange rate is currently 1.117 euros per U.S. dollar goes thus:

$1 = €1.117

Therefore, €3700 will be converted to dollars as:

= 3700/1.117

= $3312.4

The answer is $3312.4

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2 years ago

A company's flexible budget for 24,000 units of production showed per unit contribution margin of $2.50 and fixed costs, $31,200

ANTONII [103]

Answer:

The operating income will be:

Total contribution($2.50 x 29,000) = 72,500

Less: Fixed cost = 31,200

Operating income = 41,300

Explanation:

The contribution per unit is $2.50. This per unit contribution will be multiplied by the number of units produced and sold in order to obtain total contribution. Operating income is the excess of total contribution over fixed cost.

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3 years ago

Ridiculousness, Inc., has sales of $43,000, costs of $25,100, depreciation expense of $1,500, and interest expense of $1,500. If

Pavlova-9 [17]

Answer:

operating cash flow = $12,685

Explanation:

given data

sales = $43,000

costs = $25,100

depreciation expense = $1,500

interest expense = $1,500

tax rate = 35

solution

first we get here Net income that is express as

Net income = Sales - depreciation expense - interest expense .......1

Net income = $43,000 - $25,100 - $1,500 - $1,500

Net income = $14900

and here Tax Expense is 35 % of Net income

Tax Expense is 35 % of $ 14,900 = $5215

so Net Income after tax is = $14900 - $5215 = $9685

now we get here operating cash flow that is express as

operating cash flow = Net Income after tax + Depreciation expense + Interest Expense .............2

operating cash flow = 9,685 + 1,500 + 1,500

operating cash flow = $12,685

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3 years ago