Answer:
a) $1,000
Explanation:
Early Settlement Discount
This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified later date.
However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.
A quotation of 2/10, n/30
This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.
<em>Applying this to the question, the purchase date is August 1, the the latest date for which account is settle to qualify for early settlement discount will be 11 days i.e (1+10) .</em>
Since the payment will be made on August 12, no cash discount will received. Therefore, a payment of gross amount of $1,000 would be credited to the cash account.
Answer:
The closest answer is option A,$7649
Explanation:
The net present value of the investment is the present value of annual cost savings minus the initial cost of investment.
present of cash flow=cash flow/(1+r)^n
r is the discount rate of 12%
n is the year the cash flow relates to ,for instance year zero for the initial investment
NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41
note that the project gives $7,000 in salvage value in year 5
<span>For individual taxpayers, deductible losses for tax purposes do not include personal losses. </span>
Answer:
The answer can include both C and D. Description below.
Explanation:
We make the following records.
The treasury stock was reissued at a premium of 5184 - 4556 = $628
Since treasury stock is credit account by nature we debit to reduce it by the Amount of $4,566
$628 is to be credited to the paid in capital as this is premium received in excess of par value of the stock. Since there is no mention of premium or paid in capital account we may credit the Excess of Par/Common.
Hope that helps.
Answer:
The multiple choices are as follows:
$4,720.
$17,260.
$48,680.
$43,960.
$42,960.
The beginning cash balance was $4,720
Explanation:
The formula for closing cash balance can be used to determine the opening cash balance as shown thus:
closing cash balance=net increase in cash+opening balance of cash
by arranging the equation
opening cash balance =closing cash balance-net increase in cash
closing cash balance is $26,700
net increase in cash is $21,980
opening cash balance=$26,700-$21,980=$4,720