Answer:
The advertising business could use Sarah's template and give it to her colleagues and sell it out to everyone.
Explanation:
She can then use the other templates for a later date and make it availbale to her colleagues whenever they need it.
A: creating a custom template
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
Explanation:
The computation is shown below:
a. The current account balance equal to $44,400
b. The current account balance equal to
Since the company prepaid rent for two years is $44,400 but we have to compute four four months i.e from September 1 to December 31
We assume the books are closed on December 31
So, the current account balance is
= $44,400 - $7,400
= $37,000
The $7,400 is come from
= $44,400 × 4 months ÷ 24 months
= $7,400
c. And, the adjusting entry is
Rent expense A/c Dr $7,400
To Prepaid rent A/c $7,400
(Being rent expense is recorded)
Answer:
The overall rate of return is 16.67%
Explanation:
The computation of the overall rate of return is shown below:
= Actual amount return ÷ investment amount
= ($15,000 × 23% + $140,000 × 16%) ÷ ($155,000)
= ($3,450 + $22,400) ÷ ($155,000)
= ($25,850) ÷ ($155,000)
= 16.67%
Hence, the overall rate of return is 16.67%
We simply applied the above formula and the same is to be considered
1. Record the issuance of note.
2. Record the adjustment for interest.
3. Record the repayment of the note at maturity.
Answer:
1.
Aug 1st,2021; Entry to record note issuance is as followed:
Dr Note Receivable $20,600,000
Cr Cash $20,600,000
(to record the issuance of note to Trico Technologies)
2.
Dec 31st,2021; Entry to record interest income from note receivable:
Dr Interest revenue receivable $515,000
Cr Accrued Interest Income $515,000
(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)
3. January 31st, 2022; Entry to record repayment of the note at maturity:
Dr Cash $21,218,000
Cr Interest Income $103,000
Cr Note Receivable $20,600,000
Cr Interest Income receivable $515,000
( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.
Explanation:
Answer: Money multiplier is 12.50
Explanation: Money Multiplier is the amount of cash to be reserved.
It is calculated thus: 1/r where r is the rate
= 1/0.08= 12.50
Increasing the reserve ration will decrease the multiplier.
Answer:
Convergence
Explanation:
Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.
Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.
Answer: Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
Explanation:
The Responsibility Income Statement is one where the different centers in a business have their own sub income statement so that the activities of each center and their profitability is measured and monitored.
In this statement, costs are classified as Variable and Fixed so it is important that it is known whether the costs are variable or fixed.
As the statements are per center, the costs in them would have to be only those that are directly traceable to that center so that a truer reflection of the statements can be seen.
The main concepts involved in preparing a responsibility income statement encompass the traceability of costs to the responsibility center and the form of organization of the responsibility center, either as a profit center or an investment center.
In preparing a responsibility income statement that shows both the contribution margin and the responsibility margin, two primary concepts involve the allocation of costs to varying centers. Firstly, one needs to ascertain whether these costs are directly traceable to the responsibility center, meaning it must be identifiable and characterized to a specific center. Secondly, it's imperative to determine whether the responsibility center is structured as a profit center or an investment center. A profit center bears responsibility for both costs and revenue, while an investment center is accoutable for costs, revenue and assets.
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