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jonny [76]
3 years ago
10

Prepare the required end-of-period adjusting entries for each independent case listed below.

Business
1 answer:
Nady [450]3 years ago
8 0

The preparation of the required end-of-period adjusting entries for each independent case is as follows:

<h3>Adjusting Journal Entries:</h3>

Case 1; The Bramble Company:

December 31

Debit Supplies Expenses $6,972

Credit Supplies $6,972

Case 2; The Bridgeport Company:

December 31

Debit Depreciation Expenses $1,008

Credit Accumulated Depreciation $1,008 ($168 x 6)

Case 3; Marin Realty

December 31

Debit Rent Receivable $2,352

Credit Rent Revenue $2,352

<h3>What are adjusting journal entries?</h3>

Adjusting journal entries are entries made at the end of the accounting period to bring the accounts in line with the accrual concept and the matching principle of financial accounting.

These principles require that expenses are recognized when incurred and not when payment is made and that revenues are recognized when earned and not when cash is received.

<h3>Data Analysis:</h3>

Case 1; The Bramble Company:

December 31 Supplies Expenses $6,972 Supplies $6,972

Case 2; The Bridgeport Company:

December 31 Depreciation Expenses $1,008 Accumulated Depreciation $1,008 ($168 x 6)

Case 3; Marin Realty

December 31 Rent Receivable $2,352 Rent Revenue $2,352

Learn more about adjusting entries at brainly.com/question/13933471

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You are a marketing consultant and you have been hired to assist a client in deciding on a target marketing strategy that fits h
seraphim [82]

Answer:

Differentiated

Explanation:

A differentiated marketing strategy is the strategy where the company decided to provide the distinct offering to each kind of market but that should be targeted one. Each segment should be target in the way where the company gives the unique benefits for various kind of segments

Since in the given situation it is mentioned that there is the need to focus more than one market so here it should use the differentiated targeting strategy

5 0
2 years ago
The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to
ololo11 [35]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

3 0
3 years ago
Sustainable development refers to _____. a. economic activities that do not threaten the environment b. an increase in the numbe
azamat

Answer:

A

Explanation:

The Brundtland Report defines Sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

8 0
3 years ago
If Wild Widgets, Inc., were an all-equity company, it would have a beta of 0.9. The company has a target debt-equity ratio of .4
Veronika [31]

Answer:

a. 6.5%

b. 13.06%

c. 10.91%

Explanation:

a.

Cost of debt of a bond is yield to maturity. Yield to maturity is the rate of return that a investor actually receives or a borrows actually pays on a bond. It is long term return or payment which is expressed in annual term.

Formula for yield to maturity is as follow

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

By placing values in the formula

Assuming the bond face value is $1,000

Yield to maturity = [ (1000x7.2) + ( 1,000 - $1,090 ) / 20 ] / [ ( 1,000 + $1,090 ) / 2 ]

Yield to maturity = [ $72 + ( 1,000 - $1,090 ) / 20 ] / $1,045

Yield to maturity = [ $72 - $4.5 ] / $1,045

Yield to maturity = $67.5 / $1,045

Yield to maturity = 6.5%

So, the cost of Debt is 6.5%

b.

As 0.9 is the unlevered beta, We need Levered beta due to restructuring of capital.

Beta Levered = Beta Unlevered x ( 1 + ( 1 - tax rate ) x Debt / Equity)

Beta Levered = 0.9 x ( 1 + ( 1 - 0.35 ) x 0.4 )

Beta Levered = 1.134

Cost of equity can be calculated using CAPM

CAPM calculated the expected return on an equity investment based on the risk free rate, market premium and risk beta of the investment.

Formula for CAPM is as follow

Expected return = Risk free Rate + Beta ( Market premium)

As we know the Risk premium is the difference of market return and risk free rate.

Expected return = Risk free Rate + Beta ( Market Return - Risk free Rate )

Ra = Rf + β ( Rm - Rf )

Ra = 4.1% + 1.134 ( 12% - 4.1% )

Ra = 13.06%

Cost of Equity is 13.06%

c.

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity )+ ( Cost of debt ( 1- t) x Weightage of debt )

Placing the values in formula

If the debt to equity 0.4  the equity value should be 1 and total capital is 1.4 ( 1 + 0.4 )

WACC = ( 13.06% x 1 / 1.4 )+ ( 6.5% ( 1- 0.35) x 0.4 / 1.4 ) = 9.71% + 1.2% = 10.91%

WACC is 10.91%

4 0
3 years ago
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 2
Dovator [93]

Answer: $413.81

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

Price of bond = Present value of annuity + Present value of face value

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

8 0
3 years ago
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