Answer:
Dr. Allowance for Doubtful Accounts...1,200
Cr. Accounts Receivable....................................1,200
Explanation:
When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:
A credit to Accounts Receivable (to remove the amount that will not be collected)
A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)
Therefore the JOURNAL ENTRIES for the $1,200 uncollectible debt will be
Dr. Allowance for Doubtful Accounts...1,200
Cr. Accounts Receivable....................................1,200
The appropriate reflection of the cash transactions between these reporting entities is as follows:
John Hamilton Sauce-it-up Stone Creek Bank
Cash +$500,000 $450,000 -$500,000
-$450,000
Balance $50,000 $450,000 -$500,000
<h3>What is a reporting entity?</h3>
A reporting entity is an economic unit that publishes general purpose financial reports to enable users make and evaluate their decisions about the allocation of scarce resources.
Thus, John Hamilton's cash holding increased by $50,000 net. The cash holding of Sauce-It-Up increased by $450,000 while the cash holding of Stone Creek Bank decreased by $500,000.
Learn more about cash flows of reporting entities at brainly.com/question/24179665
Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
Presto will record the acquisition cost of the equipment as $22,250 (21,500+430+320) which is the total cost for making the fixed asset ready for operation. The Generally accepted accounting principle requires a company to record all of the acquisition cost of a fixed asset. Thus, Presto company must capitalize all cost related to the fixed asset.
The white house is in the middle. Good riddle!
