Answer:
Payment of more interest in future and extension in the term of debt
Explanation:
Credit cards refer to plastic money.Such cards grant the holder the facility to withdraw and make payments greater than their balance of money in the account. Credit cards grant liquidity to the holder but at the same time, the holder is required to pay interest if the money drawn in excess is not paid back to the issuer within a stipulated time.
Minimum balance payment refers to that threshold limit of payment required which keeps the credit card and credit limit operational.
Paying a minimum balance eliminates late fee but interest will have to be paid on the balance remaining outstanding. So gradually, as one keeps paying only the minimum balance, the amount remaining unpaid would rise and thus, the interest to be paid on such outstanding amount shall rise too.
Also, with increasing outstanding dues, the debt term i.e the period by which the holder pays off the entire money due along with interest, will extend. So minimum balance payment may save funds initially, but has adverse long term implications.
Answer:
$5,220
Explanation:
The computation of the bad debt expense for the period end adjustment is shown below:
= Allowance of bad debts + credit balance of Allowance for Doubtful Accounts
where,
Allowance of bad debts = 2% × $249,000 = $4,980
And, the credit balance of Allowance for Doubtful Accounts is $240
Now put these values to the above formula
So, the value would equal to
= $4,980 + $240
= $5,220
The journal entry is shown below:
Bad debt expense A/c Dr $5,220
To Allowance for Doubtful Accounts $5,220
(Being bad debt is recorded)
<span>John would want to be the member as a limited partner. This would allow him to be an owner of the company and provide leadership (and also receive earnings) without being liable for the firm's debts. A limited liability corporation (LLC) allows for the owners to not be responsible for the debts of the firm.</span>
Answer:
Godfrey Corporation
GOLDFREY CORPORATION
Balance Sheet (Partial)
December 31, 2017
Noncurrent assets:
Investments:
Investment In Stock, at fair value $64,100
Stockholders' Equity:
Common stock
Retained earnings
Less :
Unrealized loss $4,900
Explanation:
a) Data and Calculations:
Long-term investment available for sale:
Cost = $69,000
Fair value 64,100
Unrealized loss $4,900
b) The correct entry would have been to reduce the net income by the unrealized loss. However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.
