Answer:
The answer is: $47,700
Explanation:
To determine net working capital we use the following formula:
Net working capital = total current assets - total current liabilities
- Current assets: assets that can be converted to cash within a on year period (e.g. cash, account receivables, inventory, etc.)
- Current liabilities: debts that should be paid within a one year period (e.g. accounts payable, wages, taxes, etc.)
Net working capital = $119,800 (current assets = total assets - net fixed assets) - $72,100 (current liabilities)
Net working capital = $47,700
Answer:
The total estimated uncollectible debt is $6000 as computed below
Explanation:
The total estimated uncollectible debt is computed as follows:
Accounts not yet due $25000*4% $1000
Accounts 1-60 days past due $10000*25% $2500
Accounts more than 60 days $5000*50% <u>$2500</u>
Total estimated uncollectible debt <u> $6000</u>
The necessary journal entry to record this estimate is shown below:
Dr bad debt expense $5000
Cr Allowance for uncollectible debt $5000
Even though $6000 is the estimated uncollectible, the implication is that the closing balance in allowance for uncollebtible debt should be $6000,since there is a credit of $1000 already in the account, the balance required to top it up to $6000 is $5000
Answer: Employee separation
Explanation:
From the question, we are informed that Jayden, a salesman at Srastis, a company that sells home appliances, did not achieve his sales targets for three consecutive quarters, and that his manager asked him to resign.
In the context of human resource planning, this scenario best illustrates employee separation. Employee separation has to do with situation whereby the services of an employee is no longer needed by an organization.
Answer: Interest revenue for $2400
Explanation:
From the question, we are informed that Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit for Interest revenue for $2400.
This was calculated in the following way:
= $60,000 × 8% × 1/2
= $60,000 × 0.08 × 0.5
= $2400 interest revenue
Answer:
Question 1
B. $41,910
Question 2
C. Debit to interest receivable for $90
Explanation:
Question 1
Calculation for the adjusted cash balance
Using this formula
Adjusted cash balance = Cash balance per books +Deposits in transit - Outstanding checks
Let plug in the formula
Adjusted cash balance= $43,860+$16,800-$18,750
Adjusted cash balance= $41,910
Therefore Adjusted cash balance is $41,910
Question 2
Based on the information given The Appropriate journal entry to record accrued interest at the end of its fiscal year on December 31, 2019 will include a:
Debit to interest receivable for $90 which is calculated as:
Interest receivable=[(6%*$18,000*90days/360)/3]
Interest receivable=$270/3
Interest receivable=$90
