Assets should be listed down based on its liquidity. The more liquid it is, the higher its place in the balance sheet.
<span>$3,100 in Supplies to be converted in March,
$4,700 Notes Receivable to be converted in August,
$800 in Prepaid Insurance to be converted in April, and
$6,200 in Accounts Receivable to be converted in June
The assets should be listed in this order:
</span><span>Supplies $3,100
</span><span>Prepaid Insurance $800
</span><span>Accounts Receivable $6,200
</span><span>Notes Receivable $4,700</span>
Answer:
6.12%
Explanation:
the market value of the bond when you purchased it was:
PV of face value = $1,000 / 1.04⁵ = $821.93
PV of coupon payments = $60 x 4.4518 (PV annuity factor, 4%, 5 periods) = $267.11
initial investment = $1,089.04
after 1 year, you receive $60 +
PV of face value = $1,000 / 1.034⁴ = $874.82
PV of coupon payments = $60 x 3.6818 (PV annuity factor, 3.4%, 4 periods) = $220.91
market price = $1,095.73
total holding return = ($1,095.73 + $60 - $1,089.04) / $1,089.04 = 6.12%
Answer:
d) debit to cash for $8,820
Explanation:
The Journal entry is shown below:-
Cash Dr, $8,820 ($9,000 - 2% × $9,000)
To Accounts Receivable $8,820
(Being is recorded)
Here we debited the cash as increases the assets and credited the accounts receivable as it decreases the assets.
Working note:
Net sales = Sales - Sales returns
= 10,000 - $1,000
= $9,000
Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
