Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Bad debt expense Dr, $180
To Accounts receivable $180
(Being bad debt expenses is recorded)
Working Note:-
Bad debt expense = $6,000 × 3% = $180 is estimated
Therefore for recording the bad debt expenses we debited bad debt and credited accounts receivable.
Answer:
The correct answer is option B.
Explanation:
An increasing-cost industry is that kind of industry where the cost of production increases as new firms enter the industry. It generally happens as the industry expands, the cost of inputs increases, because the input demand is increasing as well.
An increasing cost industry has an upward sloping long-run supply curve. So when the demand increases, the new demand curve will intersect the upward sloping demand curve at a higher point. This will cause both the product price as well as the output level to increase.
Answer:
Ending Inventory = $55,000
Explanation:
<u>Particular Cost price Retail price
</u>
Opening Inventory $30,000 $42,000
<u>Add: Additional Purchases $196,000 $368,000
</u>
<u>Cost of Goods Available for Sale $226,000 $410,000
</u>
Cost to Retail Ratio: 55 %
Less: Net Sales $310,000
Ending Inventory $55,000 $100,000
Note:
Cost to Retail Ratio = $226,000 / $410,000
Cost to Retail Ratio = 55% (Approx)
Acc 450 when financial statements are affected by a material departure from generally accepted accounting principles, the auditors should Issue an "except for" qualification or an adverse opinion.
When auditors were unable to gather sufficient appropriate audit evidence on specific matters and their impact was material but not pervasive, a qualified opinion was also offered. Auditors typically provide a qualified opinion by stating that, with the exception of particular transactions or balances, or circumstances, the financial statements are free of major misstatements.
To describe the nature and circumstances that led auditors to modify their view in the audit report, a reason for adverse opinion paragraph must be added as a distinct paragraph to an adverse audit report.
The balance sheet and income statement, as well as each of their individual line items, would alter if the financial statements adhered to appropriate accounting rules, according to a basis for unfavourable opinion paragraph.
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Answer:
the present value of the stock is 26.57
This will be the amount willing to pay per share today.
Explanation:
We have to calculate the present value of the future dividend
![\left[\begin{array}{ccc}Year&Cashflow&Present \: Value\\0&6&\\1&7&6.3636\\2&8&6.6116\\3&9&6.7618\\4&10&6.8301\\total&9.7&26.5671\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26Cashflow%26Present%20%5C%3A%20Value%5C%5C0%266%26%5C%5C1%267%266.3636%5C%5C2%268%266.6116%5C%5C3%269%266.7618%5C%5C4%2610%266.8301%5C%5Ctotal%269.7%2626.5671%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will put each dividend and their year into the formula and solve for PV
First Year
Second Year
Third Year
Fourth Year
The value of the stock is the sum of the present value of their dividend
The sum for this firm is 26.5671 = 26.57
