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1 year ago

Aruba Company had a checkbook balance on December 31,

Business

1 answer:

g100num [7]1 year ago

3 0

Answer:

$7,440,000
$5,500,000

Explanation:

1. Checkbook balance of $8,000,000 in December 2020.

Check payable to Aruba of $2,000,000 has not yet being deposited so it should be removed from cash balance

Check payable that was returned by the bank of $500,000 should not be included either because it did not clear.

Check drawn on Aruba account of $1,500,000 was recorded but not yet mailed so it should be added back.

Cash on hand - undeposited collections and Change fund are actual cash that should be added as well.

= 8,000,000 - 2,000,000 - 500,000 + 1,500,000 + 400,000 + 40,000

= $‭7,440,000‬

2. Cash equivalents are those instruments that can be easily converted to cash. They typically mature within 3 months.

The Cash equivalents here are Treasury bills and Money Market placements

= 2,500,000 + 3,000,000

= $5,500,000

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Jed Castanza transfers $90,000 of cash to the JN partnership for a 60 percent interest in the JN partnership. Ned transfers a bu

mojhsa [17]

Answer:

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjusted basis is 30,000 while the property value is 100,000

Explanation:

Mr Castanza

90,000 = 60%

Ned

100,000 - 40,000 = 60,000 = 40%

Total capital

90,000 + 60,000 = 150,000 = 100%

<u>Check for difference:</u>

90,000/150,000 x 60% = 90,000

60,000/150,000 x 40% = 60,000

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjustedbasis is 30,000 while the property value is 100,000

8 0

1 year ago

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $69,000

USPshnik [31]

Answer:

bad debt expense 18,000

Explanation:

bad debt 1% of credit sales:

180,000 x 1% = 18,000

When the adjustment is made base on sales, the current balance in the allowance for doubtful debts is irrelevant.

So no calculation is needed for those.

8 0

2 years ago

Gordon Corporation produced 10,000 digital watches in the current year. Variable costs are $8 per watch. Overhead assigned is $2

olchik [2.2K]

Answer:b

Explanation:sorry if the answer is wrong

8 0

1 year ago

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manuf

xenn [34]

Answer:

Option A net worth -215,906.03

Option B net worth -210, 159.75

It is a better deal to use the machine through lease than purchase it as the net worth is lower.

Explanation:

Purchase the machine:

-164,000 purchase cost

PV of the maintenance cost

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C -9,000.00

time 10

rate 0.08

$-9000 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\$

PV -$60,390.7326

PV of the salvage value

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 14,000.00

time 10.00

rate 0.08000

$\frac{14000}{(1 + 0.08)^{10} } = PV$

PV 6,484.7088

<em>net worth: </em>

-162,000 - 60,390.73 + 6,484.70 = -215,906.03

PV of the lease: (annuity-due)

$C \times \frac{1-(1+r)^{-time} }{rate} (1+rate)= PV\\$

C 29,000.00

time 10

rate 0.08

$29000 \times \frac{1-(1+0.08)^{-10} }{0.08} (1+0.08) = PV\\$

PV $210,159.7494

6 0

2 years ago

You own a stock with an average return of 15 percent and a standard deviation of 15 percent. In any one given year, you have a 6

raketka [301]

Answer:

30%

Explanation:

Given:

Average return = 15%

Standard deviation = 15%

Computation:

On assuming 68% chance,

Lowest point = Average return - Standard deviation

Lowest point = 15% - 15%

Lowest point = 0%

Highest point = Average return - Standard deviation

Highest point = 15% + 15%

Highest point = 30%

Therefore, on 68%, Lowest point is 0% and highest point is 30%.

3 0

1 year ago