Accounting 551 Homework for Week 2 Exercises 13-1, 13-2,13-13. 13-1. How would each of the following items be reported on the balance sheet. A. Accrued Vacation Pay- Current Liability B.
(0.5 points) An income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. 4. What is a projection? (0.5 points) A projection is a guess or estimate about what something will be like in the future. 5.
Accounts receivable are $500,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500. a. Prepare the adjusting journal entry to record bad debts expense for the year. Debit: Allowance for doubtful accounts $8,500 Credit: Bad Debts Expense $8,500 b. If the allowance for doubtful accounts had a debit balance of $600 instead of a credit balance of $1,500, prepare the adjusting journal
b. Inventory. c. Equipment. d. Not on the balance sheet. 28.
Give at least two examples of types of state taxes. (1.0 points) Sales taxes and Property taxes 5. What is a pay stub? (0.5 points) A sort of receipt of your paycheck. Normally attached below your check.
| | Instructor Explanation: | Since a change in costs to produce the product is a supply factor, an increase in costs would be expected to decrease bicycle supply. Remember that supply is a schedule of how many units suppliers are willing to offer at different prices. When costs rise, the supply curve decreases or shifts to the left. Since changes in producer costs is not a demand factor, there would be no impact on demand. | | | | Points Received: | 10 of 10 | | Comments: | Good, JP | | | 2.
Therefore, the cost of fixed rate debt equals 8.95% plus 1.1% risk premium, which totaled to 10.5% Cost of Debt = (0.5 x 0.08) + (0.5 x 0.105) = 0.095 = 9.25% [since floating rate and fixed rate debt both weigh 50%, we use the weighted average approach to calculate the total cost of debt rate] Based on historical data analysis below, we get an average income tax rate of 42%. | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | Income before income taxes | 83.5 | 105.6 | 103.5 | 121.3 | 133.7 | 185.1 | 236.1 | 295.7 | 360.2 | 398.9 | Income tax | 35.4 | 43.8 | 40.6 | 45.2 | 50.2 | 76.7 | 100.8 | 128.3 | 168.5 | 175.9 | Tax rate | 42% | 41% | 39% | 37% | 38% | 41% | 43% | 43% | 47% | 44% | | | | | | | | | | | | Average tax rate | 42% | | | | | | | | | | After-tax cost of debt = (1 - 0.42) x 0.0925 = 0.05365 = 5.365% Cost of Equity From Table B and Exhibit 5, * Risk free rate (1-year)= 6.9% Premium = 8.47% * Risk free rate (10-year)= 8.95% Premium = 7.43% ** ** Since A rated bond is considered upper medium grade and the company is A rated, we assume long-term
A reporting entity may begin the second statement with net income. Although Zumiez states the total amount of comprehensive income, they fail to break out the components of their total anywhere in their financial statements. SFAS No. 130 requires the disclosure of comprehensive income and discusses how to report and disclose comprehensive income and its components, including net income. However, it does not specify when to recognize or how to measure the items that make up comprehensive income.
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5. What is noninstallment credit? (0.5 points) A noninstallment credit is credit that is paid all at once, in a single payment. 6. Name at least one section of a credit report.