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2 years ago

Spontaneous financing refers

1 answer:

6 0

Answer: In business, "spontaneous finance" refers to financing that arises out of regular, day-to-day operations. Unlike with other common sources of financing, such as loans or bonds, obtaining additional spontaneous financing doesn't require any special action by the company; it just "happens," hence the name spontaneous.

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During January, Year 2, Geo entered into the following transactions: Paid $728 on account for utilities that were used during De

MAXImum [283]

Answer:

Geo

1. Journal Entries:

1. Debit Utilities Payable $728

Credit Cash $728

To record the payment of utilities on account.

2. Debit Supplies $488

Credit Cash $488

To record the purchase of supplies for cash.

3. Debit Prepaid Rent $6,100

Credit Cash $6,100

To record the prepayment of rent for 6 six months.

4. Debit Equipment $21,000

Credit Note Payable $21,000

To record the purchase of equipment on account.

5. Debit Cash $16,000

Debit Accounts Receivable $16,500

Credit Services Revenue $32,500

To record the rendering of services for cash and on account.

6. Debit Salaries Expense $7,400

Credit Cash $7,400

To record the payment of salaries for January.

2. T-accounts:

Utilities Payable

Accounts Titles Debit Credit

Cash $728

Cash

Accounts Titles Debit Credit

Utilities payable $728

Supplies 488

Prepaid Rent 6,100

Service Revenue $16,000

Salaries Expense 7,400

Supplies

Accounts Titles Debit Credit

Cash $488

Prepaid Rent

Accounts Titles Debit Credit

Cash $6,100

Equipment

Accounts Titles Debit Credit

Note Payable $21,000

Note Payable

Accounts Titles Debit Credit

Equipment $21,000

Accounts Receivable

Accounts Titles Debit Credit

Service Revenue $16,500

Services Revenue

Accounts Titles Debit Credit

Cash $16,000

Accounts Receivable 16,500

Salaries Expense

Accounts Titles Debit Credit

Cash $7,400

Explanation:

Since the beginning balances were not supplied, the T-accounts are not balanced at the end of the period. Journal entries were prepared to record the daily business transactions for the first time in the accounting system. The entries showed the accounts to be debited and credited respectively.

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2 years ago

A multinational company that acts with _____ has offices, manufacturing plants, and distribution facilities in different countri

Scorpion4ik [409]

A multinational company that acts with DEFINE GLOBAL CONSISTENCY has offices ..................... Define global consistency is a strategies used by companies that have branches in other countries of the world to maintain same corporate governance in all these branches. Things are done in all these companies in the same way for similar situations. Define global consistency make thing easier for managers at the branches when it comes to decision making.

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3 years ago

Francine installed a new pool for $11,320 using a 12-month deferred payment plan with an interest rate of 20.67%. what is the ba

mr_godi [17]

$11,320 with its interest rate over the year will be $13659.84. If Francine paid $436 each month for a year he would have paid off $5232 in a year. His debt balance would still be remanding at $8427.84. Francine will have paid off a large amount of his payment plan with the company however he will still be required to spend 18 months or so to pay back what he owes as there was a a 20.67% interest sum added to his payment plan with the company.

3 0

3 years ago

Determine the degree of the polynomial 2x^2y^3-4xy^2

galben [10]

The degree for this is 5

4 0

3 years ago

On January 2, 2014, Best Beverages acquired 45 percent of the stock of Better Bottlers for $30 million in cash. Best Beverages a

Alex787 [66]

Answer:

Calculation of 2014 equity in net income

Better Bottler's net income $1,125,000

($2,500,000* 45%)

Less: Amortization of patents and $450,000

trademarks revaluation

(160-150* 1000,000/10 at 45%)

Less: Amortization of brand names $270,000

($9000,000 /15 at 45%)

Equity in net income of Better bottles $405,000

Journal entries

Description Debit Credit

Investment in better bottles $405,000

Equity in net income of better bottle $405,000

Cash $292,500

($650,000 * 45%)

investment in better bottles $292,500

b) Calculation of investment balance

Investment balance, Jan 2,2014 $30,000,000

+ Reported income less dividends $5,400,000

($25,000,000 equity - $13,000,000 retained

earnings) * 45%

- 4 yr of revaluation write off

($450,000 * 4) $1,800,000

($270,000 *4) $1,080,000

Investment balance, Dec 31, 2017 $32,520,000

4 0

3 years ago