Answer:
Under the accrual basis, it should recognize $1,000,000 as property tax revenue for the year 2019. The remaining $45,000 that it does not collect in year 2019 will be accounted for as Property Tax Receivable while the $5,000 will be recorded as Uncollectible Expense in 2019.
Explanation:
The accrual concept or basis of accounting requires that all revenues and expenses relating to a fiscal year be recognized in that accounting year. It is not only the actual cash receipts and payments that should be recognized. This means that any revenue that is due but not yet received will be accounted for in the year that the revenue arises. And all the related expenses for raising the revenue will also be accounted for in the same year.
Answer:
Smith will report an investment income of $56,000 in its income statement.
Explanation:
Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.
<span>how much of their company's merchandise is being sold, how much of it has been damaged, how much has gone out of style or is out of season. Once the inventory is taken, Pristine products should be able to project how much product needs to be manufactured and sold going forward so that they do not work at a loss of profits.</span>
Answer:
The correct answer is 23.86%.
Explanation:
According to the scenario, the given data are as follows:
Loan amount = $12,000,000
Time period = 12 months
Rate of interest = 21%
compensating balance = 12%
So we can calculate the effective rate of interest by using following method:
Effective rate of interest = (Loan amount × Interest Rate
) ÷ Loan amount × (1 – compensating balance )
By putting the value, we get:
= ( $12,000,000 × 0.21) ÷ ($12,000,000 × (1-0.12)
= 0.2386 or 23.86%
