Decide whether each feature is associated with a wiki or a web page.

On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright rec

maria [59]

Solution:

1. (i)

Sales revenue = Present value of the note receivable

= $528,000 x .86384 = $456,108

Present value of $1: n = 3, i = 5% (PV of $1)

(ii)

December 31, 2018:

Interest revenue: ($456,108 x 5%) = $22,805

December 31, 2019:

Interest revenue: (($456,108 + $22,805) x 5%) = $23,946

December 31, 2020:

Interest revenue: (($456,108 + $22,805 + $23,946) x 5%) = $25,143

2. Journal entries to record the sale of merchandise on January 1, 2020

Date General Journal Debit Credit.

Jan 01, 2018 Note receivable 528,000

Discount on note receivable 71,892

Sales revenue 456,108

Dec 31' 2018 Discount on note receivable 22,805

Interest revenue 22,805

Dec 31, 2019 Discount on note receivable 23,946

Interest revenue 23,946

Dec 31' 2020 Cash 528,000

Discount on note receivable 25,143

Interest revenue 25,143

Note receivable 528,000

7 0

2 years ago

Jonah and Cathy were sure that they had correctly answered most of their exam questions. However, they each scored less than 60

Genrish500 [490]

Explanation:nevermind

6 0

2 years ago

Lopez Sales Company had the following balances in its accounts on January 1, 2018: Cash$68,000 Merchandise Inventory 48,000 Land

maxonik [38]

Answer:

Lopez Sales Company

1. Amount of Gross Margin recognized by Lopez:

Sales = $81,600

Less cost of sales = $38,400

Gross Margin = $43,200

2. Amount of the gain on the sale of land recognized by Lopez:

Land:

Selling price = $81,000

less Cost = $43,200

Gain on sale = $37,800

Explanation:

a) Gross margin is the difference between the selling price and the cost price of a product. It is the profit determined before business running expenses are deducted to obtain the net income or margin.

It measures the ability of the business to generate enough income to cover expenses that are normally incurred in business, like rent, utilities, and salaries and wages.

b) The Gain on sale of any capital asset is the difference between the selling price and the cost (book value). This gain is reported separately in the income statement and is the subject of capital gains tax.

4 0

2 years ago

What are three techniques stockholders can use to motivate managers to maximize their stock’s long-run price? Should managers fo

Romashka [77]

Answer:

Please see below.

Explanation:

a.

• Reasonable compensation package. Every stockholders would usually want a good return on their investments. One of the techniques that can be used by them is to offer good and reasonable compensation packages to the company's highly performing executives and managers. The aim is to spur them to act in the best interest of the stockholders and not themselves. This will also translate to better performance of the company.

• Firing of managers who don't perform well. If a company's stock is not performing well(does not appreciate), such would usually be tied to its board and managers. Stockholders are the owners of a company because their funds are being used to trade hence can threaten to replace or actually replace any manager who is not performing well. By so doing, the managers that are retained will be motivated to perform really well in order to retain their jobs hence translate to better company performance.

• Threat of hostile take over. Stockholders could also threaten a company's board of being taken over by a proven and well accomplished company , if their stock price does not improve overtime. When the managers or board realize that their job is being threatened, they will be motivated to act fast by ensuring that the company's stocks yield adequate return in the long run.

b.

What should be paramount to managers is how to ensure that their company's intrinsic stocks value(an estimate of the true value of a stock, that is premised on well calculated risk) are well maximized. The stockholders should also be carried along while this process is on going. By maximizing their stock's intrinsic value, such would bring about high value to the stocks, while as time goes on, the actual stock price will be much closer to the intrinsic value of the stocks.

6 0

2 years ago

A seller uses a periodic inventory system, and on April 4, it sells $5,000 in merchandise on credit (when its cost is $2,400) to

RoseWind [281]

Answer:

Periodic Inventory System

Journal Entries

April 4 Debit Accounts receivable $5,000

Credit Sales revenue $5,000

To record the sale of goods on credit, terms of 3/10, n/30.

April 5 Debit Sales returns $500

Credit Accounts receivable (cash) $500

To record the return of goods for a cash refund.

Explanation:

a) Data and Analysis:

April 4 Accounts receivable $5,000 Sales revenue $5,000 credit terms of 3/10, n/30.

April 5 Sales returns $500 Accounts receivable (cash) $500

b) The seller uses a periodic inventory system. Therefore, the cost of goods sold will not be recorded on April 4 until April 30, when there will be a physical count of inventory to determine the closing inventory. With the beginning and ending inventories together with the purchases account, the cost of goods sold can then be calculated.

6 0

2 years ago