Answer:
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
Explanation:
When an expense is incurred but yet to be paid by an organization, the entries required are
Dr Expense (p/l)
Cr Accrued expense (B/s)
when payment is made
Dr Accrued expense (B/s)
Cr Cash account
Given that Zoey Bella Company has a payroll of $9,440 for a five-day workweek and the year ends on a Thursday. As such, the company as at 31 December has incurred salaries for 4 days. This has to be accrued for but first to calculate the amount
= 4/5 * $9,440
= $7,552
Hence adjusting entry required on December 31, assuming the year ends on a Thursday
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
Answer:
Explanation:
Weighted Average Cost of Capital; formula is as follows;
WACC = wE*re + wP*wp + wD*rd(1-tax)
where w= weight of...
r = cost of ...
E= common equity
P = preferred stock
D = Debt
Find the weights of each source of capital;
WACC = (0.50*0.17) +(0.20*0.03) + [0.20*0.04(1-0.40)] +[0.10*0.07(1-0.40)]
WACC = 0.085 +0.006 + 0.0048 + 0.0042
WACC = 0.1 or 10%
Answer:
B
Explanation:
Opportunity cost is the valje of the next best alternative forgone when a choice is made.
Answer:
A. 8%
Explanation:
Profit margin = (Operating income / Revenue)
Profit margin = ($80,000 / $1,000,000)
Profit margin = 0.08
Profit margin = 8%
Answer: $75
Explanation:
Using the Gordon Growth Model:
Price of stock = Next year dividend / (Required return - growth rate)
Growth rate is 0% as dividend does not change per year.
Price of stock = 6 / 8%
= $75