Answer:
The journal entry correctly records this transaction is:
b. Cash 1,300, Accounts receivable 1,200, Consulting revenue 2,500
Explanation:
Kincaid Company provided consulting service of $2,500 to a customer, the company record revenue for consulting service of $2,500
Customer paid $1,300 and promised to pay the remainder next month, the company record cash received of $1,300 and the remainder by decreasing accounts receivable of $1,200 by the entry:
Debit Cash $1,300
Debit Accounts receivable $1,200
Credit Consulting revenue $2,500
The correct journal entry to record this transaction is option b: Cash1,300, Accounts receivable1,200, Consulting revenue2,500.
The correct journal entry to record this transaction is option b: Cash1,300, Accounts receivable1,200, Consulting revenue2,500.
The entry debits Cash for $1,300, which represents the amount received in cash from the customer. It credits Accounts Receivable for $1,200, which represents the remaining amount the customer promised to pay next month. Finally, it credits Consulting Revenue for $2,500, which represents the total amount of revenue earned from the consulting service provided.
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The firm’s capital structure Tax rates
The general level of stock prices
Answer:
The firm’s capital budgeting decision rules
The firm’s capital structure.
Explanation:
Capital budgeting is a term used to describe the proposed amount which a company has decided to set aside in the fort coming year to be spent on infrastructures or capital projects.
An organisation has the power to control its Capital budget, it also has the power to control its decision rules and it Capital structures (the contents of a company's capital spending).
A FIRM CAN NOT CONTROL THE TAX RATES AND THE GENERAL LEVEL OF STOCK PRICE WHICH ARE CONTROLLED BY GOVERNMENT AND EXTERNAL FORCES.
Answer: $6000
Explanation:
If holding is $10000,
Reduction in cash holding = (10000-10000) = 0
Interest earned in government bonds=(Reduction in holdings) × 0.03 =0
Cost of deposits = 0
Additional benefit = (interest earned - cost of deposit)
Additional benefit = 0-0 = 0
Making a mid day deposit;
Reduction in cash holding = (10000-8000) = $2000
Interest earned in government bonds = Reduction in holdings × 0.03
= 2000 × 0.03 =$60
Cost of deposits=$80
Additional benefit=$60-80=-$20
Using a armored car service;
Reduction in cash holding=(10000-6000)=4000
Interest earned in government bonds= 4000 × 0.03 = $120
Cost of deposits=$120
Additional benefit=120 - 120= $0
Using computerized cash management service;
Reduction in cash holding=(10000-4000)=6000
Interest earned in government bonds;
6000 × 0.03 = $180
Cost of deposits=$180
Additional benefit=180 - 180=$0
Additional benefit is maximized in case of both computerized management service and armor vehicle . So, Optimal cash holding is $6000
Answer:
The formula to calculate the Budget Balance is
Government Income - Government Expenditure
in this case
$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million
Explanation:
A budget balance is reached when a government expenditures are equal to it's income.
In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.
Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.
Answer:
P/E Ratio = 12x or 12 times
Explanation:
We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.
P/E = Price per share / Earnings per share
We already have EPS. We need to calculate the price per share.
It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,
M/B = Market price per share / Book value per share
1.2 = Market price per share / 20
20 * 1.2 = Market price per share
Market price per share = $24
So, P/E ratio = 24 / 2
P/E Ratio = 12x or 12 times
The Price/Earnings (P/E) ratio for the company is 12, indicating that investors are willing to pay 12 times the company's earnings per share (EPS) for its stock based on its current market price.
The Price/Earnings (P/E) ratio is calculated by dividing the market price per share by the earnings per share (EPS).
- EPS = $2.00
- Market/Book Ratio = 1.2x
- Book Value per Share = $20
Market Price per Share = Market/Book Ratio * Book Value per Share
= 1.2 * $20
= $24
Now, calculate the P/E ratio:
P/E Ratio = Market Price per Share / EPS
= $24 / $2.00
= 12
The P/E ratio for the company is 12.
For more questions on Price/Earnings:
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b. Home but not Foreign will gain from trade.
c. Neither Home nor Foreign will gain from trade.
d. Home and Foreign will both gain from trade.
When the world relative price lies somewhere between the autarky relative price, D. Home and Foreign will gain from trade.
It should be noted that a relative price simply compares the price of a commodity in terms of another.
In this case, when the world relative price lies somewhere between the autarky relative price, both home and foreign will gain from trade.
Learn more about relative price on:
When the world relative price is within the range of the autarky relative prices of Home and Foreign countries, it implies better rates for international trade as compared to the domestic trade for both countries. Thus, both Home and Foreign will benefit from trade.
If the world relative price lies somewhere between the autarky relative price of Home and the autarky relative price of Foreign, then both Home and Foreign will gain from trade. This implies that the global trade price falls within the local prices at which both countries would independently trade goods. Consequently, both countries will benefit because they can now trade at better terms.
Here's how it works: At autarky (a state where a country does not engage in international trade), each country would trade goods domestically at a certain price ratio (the relative price). If the global trade price falls within these domestic relative prices, then both countries can trade internationally at better rates compared to their autarky situation, leading to mutual beneficial trade.
Therefore, the answer to your question is (d) Home and Foreign will both gain from trade.
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Answer: The adjusting entries for the uncollectible accounts would be as follows: Debit Bad debt expense $277,500; Credit Allowance for doubtful accounts $277,500
Explanation: As provided in the question, bad debt expense is determined by the percentage of sales method. In this instance, it is estimated at 1/4 of 1% of sales. 1% of $102,480,000 = $1,024,800; 1/4 of $1,024,800 = $256,200. Please note that there was an existing debit balance of $21,300 in allowance for doubtful accounts (usually, it should have a credit balance), in order to reinstate the allowance for doubtful account to $256,200, we have to credit it with $277,500 ($256,200 + $21,300), by way of the journals above.
The adjusting entry for uncollectible accounts can be calculated by adding the estimated bad debt expense ($256,200) to the existing balance in the Allowance for Doubtful Accounts ($21,300), resulting in a total adjusting entry of $277,500.
To find out the amount of the adjusting entry for uncollectible accounts, you first need to calculate the bad debt expense. Since the question states that bad debt expense is estimated to be 1/4 of 1% of sales, we would find this by multiplying $102,480,000 by 0.0025 (1/4 of 1%).
Bad debt expense = $102,480,000 * 0.0025 = $256,200
Given that the Allowance for Doubtful Accounts already has a balance (which is a debit balance of $21,300), we need to add this to the estimated bad debt expense to determine the adjusting entry.
Adjusting entry for uncollectible accounts = Bad debt expense + Existing Balance in Allowance for doubtful accounts
= $256,200 + $21,300 = $277,500
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