Answer:
The correction entries shall be as follows,
1. Service Revenue Dr. $ 920
Customer Account Cr. $ 920
2. Store Purchases Dr. $1,180
Accounts Payable Dr.$340
Supplies Account Cr. $ 1,520
Explanation:
1. The service revenue account was overstated and customer account understated. therefore by debiting service revenue and by crediting customer account, both have been restated at their actual position.
2. The accounts payable was overstated by $ 340 (1,180-1520).it is rectified by debiting with $ 340. Whereas the supplies account was wrongly debited therefore that impact of $1,520 reversed and actual store purchases debited with actual amount of $1,180
Answer:
Services
Explanation:
In the game of economics, services are actions that other people value. Services are something which people get and it helps to improve the utility level of a customer. Services are valued by people because it satisfies their needs and wants. Moreover, this is why people pay a lot of money to get better services because it plays an important to fulfil human wants.
"The answer is $106".
After tax cost of debt 6%
Dep per year 1600
Tax sav from dep 640
cost of owning 0 1
interest -480
tax saving 192
maintence -240
maintenece saving 96
Depn tax saving 640
loan repay
net cash cost 208
PV cost of owning (6%) -3474
cost of leasing
lease payment -2100
Tax savings from lease 840
net cash cost -1260
PV cost lease 6% -3368
PV cost own - Pv cost lease 106
Answer:
Option B Borrow using short-term notes payable and use the proceeds to reduce long-term debt
Explanation:
The formula for calculating current ratio is as under:
Current Ratio = Current Assets / Current Liabilities
Now the option which will either increase the current liability only (Denominator) or decrease the current assets only (Nominator) will be the right answer because the answer will decrease the current ratio.
Option B So if the company borrows money from its short term loan (current liabilities) to pay its long term debt which will increase its current liabilities and non-current liabilities. So in the nutshell will only increase the denominator (current liabilities) which will decrease the current ratio. So it is the right option. The rest of the options either increase both current assets and current liabilities or decrease both current assets and current liabilities.
