Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer. The credit card company charges a 5% service charge. Recording the transaction in the company's accounting records will have what effect on the accounting equation?
a. Increase assets and equity by $4,750.
b. Increase equity by $5,000.
c. Increase assets by $5,000.
d. Decrease assets and equity by $250.

Answers

Answer 1

Answer:

increase assets and equity by $4,750

Explanation:

Based on the information given we were told that they accepted an account of a credit card account receivable for the exchange of the amount of $5,000 of the services that was provided to a customer in which the credit card company charges 5% service charge, Based on this if we are to Record the transaction in the company's accounting records the effect on the accounting equation will be:

Increase assets and equity by $4,750

Calculated as :

$5,000-($5,000*5% Service charge)

$5,000-$250

=$4,750


Related Questions

The quality tool which shows that most quality problems are the result of only a few causes (aka 80-20 rule) is:____________

Answers

Answer:

Pareto principle or pareto analysis

Explanation:

This is the Pareto principle. This principle is named after an economist called vilfredo pareto. The specifications of the principle is that 80% of consequences are as a result of 20% of the causes. Giving us an unequal relationship existing between input and also outputs.

One good principle of this 80% to 20% rule is the identification of the best assets of an entity and the efficient usage in the creation of maximum value.

A coffee shop's production function is given by Q = KL, where MPL = K and MPK = L. The barista wage rate is $10 and the rental per square foot is $15. In the short run, store size is fixed at 500 square feet. The short-run average total cost of serving 1,500 cups of coffee is $_____.

a. 2.34
b. 6.03
c. 5.02
d. 0.63

Answers

Answer:

c. 5.02

Explanation:

Q = KL

Wage rate = 10

Rental = 15

In the short run

K = 500

Such that

Output Q = 1500 = KL

1500 = 500L

L = 1500/500

L = 3

Then the total cost

= 10(3)+15(500)

= 30 + 7500

= 7530

The average total cost

= Total cost/output

= 7530/1500

= 5.02

In conclusion the short run average total cost of serving 1500 cups of coffee is 5.02. therefore option c is the answer to the question

When an employee's behavior does not improve over time through progressive disciplinary measures, ____ is the final option.

Answers

Answer:

Discharge.

Explanation:

This is seen to be a formal way of relieving an employer off his duties due to many wrong reasons which can be easily tagged misconduct. This is is not the first step of the disciplinary action as verbal warnings and other written warnings must have been sent to the said employee(s) before dismissal. Which is seen to be the final step by the employer. Some employees are seen to try to appeal this termination as most cases is seen to be failed attempts as their cases has already been settled by the panel.

A business may decide to accept additional business at a special price for all of the following reasons except Group of answer choices if additional sales will not conflict with regular sales. if additional sales will increase differential income. if there is an increase to sales only if fixed expenses are not increased. if there is an increase to sales even if fixed expenses are also increased.

Answers

Answer:

if there is an increase to sales even if fixed expenses are also increased.

Explanation:

In simple words, fixed cost refers to the expenditures, that unlike variable expenses, remain stable at a high level. Factory or office rent , labor charges are some of the prime examples of fixed expenses.

Due to fixed expenses, entities operating at higher level makes higher profit. Hence, if the fixed expenses also increase with sales then the project might not be very profitable to accept.

What should every potential investor secure first before starting an investment plan?​

Answers

Before you make any decision, consider these areas of importance:

Draw a personal financial roadmap. ...

Evaluate your comfort zone in taking on risk. ...

Consider an appropriate mix of investments. ...

Be careful if investing heavily in shares of employer's stock or any individual stock. ...

Create and maintain an emergency fund etc.

If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise if the Fed increases total reserves by $150 billion and the reserve requirement is 0.1?

Answers

Answer:

3%

Explanation:

Increase in money supply ($ billion) = Increase in reserves / Reserve ratio

Increase in money supply ($ billion) = 150 / 0.1

Increase in money supply ($ billion) = 1,500

Increase in price level = (Increase in money supply / 100) * 0.2

Increase in price level = (1,500/100) * 0.2

Increase in price level = 3%

Companies amortize the cost of a patent over its:________

a. legal life or its useful life, whichever is longer.
b. legal life or its useful life, whichever is shorter.
c. useful life.
d. legal life g.

Answers

Answer:

c. useful life.

Explanation:

In the case of the patent, the cost price of the patent could be amortized over its useful life but that should not be more than its legal life. The legal life is 20 years

Therefore as per the given situation, the option c is correct as the cost of the patent could be amortized by the company over its useful life

Therefore the same is to be considered

hence, all other options are incorrect

Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for health insurance for her family, $2,500 for dental insurance, $4,000 for health insurance for her 23-year-old daughter who is no longer a dependent, and $3,000 for disability insurance for herself. What is Ellen's self-employed health insurance deduction?

a. $8,000
b. $10,500
c. $12,000
d. $14,500
e. $13,500

Answers

Answer:

Option D

Explanation:

You can deduct the disability insurance in order to calculate the self employed health insurance deduction

Health insurance deductions will include health insurance for her family, dental insurance and health insurance for her 23-year-old daughter.

Deductions  = $8,000 + $2,500 + $4,000

Deductions = $14,500

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation

Answers

Answer:

6.35%

Explanation:

Let us as a matter of preference determine the pretax cost of debt using the financial calculator approach as set out below:

N=40 (number of semiannual coupons in 20 years=20*2)

PMT=46.25 (semiannual coupon=face value*coupon rate*6/12=$1000*9.25%*6/12=$46.25 )

PV=-1075( current market price)

FV=1000( face value)

Lastly, enter CPT I/Y=4.23% (semiannual yield)

annual yield=pretax cost of debt=4.23% *2=8.46%

The after-tax cost of debt=8.46% *(1-25%)=6.35%

The after-tax cost of debt for use in WACC calculation=6.35%

ILL GIVE BRAINLIEST HELP ASAP AHH

Select the correct answer.

What are the forms of financial exchange?

( Bankers’ deposits, Currency, Online banking) is a form Of financial exchange that involves the use of credit and debit cards. (Deposit money, Currency, Online banking) is a form of financial exchange that involves the use of checks.


Please help!!!!!

Answers

Answer:

Online banking is a form of financial exchange that involves the use of credit and debit cards. Deposit money is a form of financial exchange that involves the use of checks.

Explanation:

PLATO user here

You are the CFO of Rock Inc, a young start-up. The company has not generated positive cash flows for the past three years and you estimate that it will take at least another 2 years for the company to become cash flow positive. To fund the next phase of growth, what should be a better source of capital, debt or equity? Why?

Answers

Answer:

Equity

Explanation:

The choice should be very straight forward, the company doesn't generate enough cash, and if it takes debt, it will not be able to pay it back. The only choice for raising capital is through issuing equity.

This is something normal for many startups, e.g. FB, Amazon, Google, etc., all got financed through equity for several years before being able to issue debt.  Of course debt is cheaper than equity, but it also poses a risk for the company.

A market that has a single supplier of a product with no close substitutes and barriers to entry is:________

a. an oligopoly.
b. monopolistically competitive.
c. a pure monopoly.

Answers

Answer:

c. a pure monopoly.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.

Additionally, a public power company refers to a company that provides power (electricity) utility to the general public of a society.

Hence, a market that has a single supplier of a product with no close substitutes and barriers to entry is a pure monopoly.

Hoagland Corp's stock price at the end of last year was $22.50, and its book value per share was $25.00. What was its market/book ratio?

Answers

Answer:

0.9

Explanation:

Hoagland corporation stock price is $22.50

Its book value per share is $25.00

Therefore the market book ratio can be calculated as follows

= 22.50/25

= 0.9

Hence the market book ratio is 0.9

Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 390,000 Variable expenses 214,500 Contribution margin 175,500 Fixed expenses 118,000 Net operating income $ 57,500 What is total contribution margin if sales volume increases by 40%

Answers

Answer:

the total contribution margin is $245,700

Explanation:

The computation of the total contribution margin in the case when the sales volume rise by 40% is shown below:

Since the sales volume is rise so the contribution margin is also rise by 40%

Therefore the total contribution margin would be

= Contribution margin × (1 + increased percentage)

= $175,500 × (1 + 0.40)

= $175,500 × 1.40

= $245,700

Hence, the total contribution margin is $245,700

Suppose a local hardware store turns over its inventory of power pools 6.0 times per year If the hardware store has an average inventory of 120 power tools, what is its average daily sales rate for power tools?

Answers

Answer: 2 power tools

Explanation:

Given the variables, Little's formula can be used to solve this.

Inventory turnover = Annual Sales / Average inventory

First find annual sales;

6 = Annual sales / 120

Annual sales = 6 * 120

Annual sales = 720 power tools.

Average daily sales assuming 360 days;

= 720/360

= 2 power tools

Beginning inventory cost $2,000. The factory put $10,000 worth of direct materials into production and spent $5,000 on direct labor and another $4,000 on overhead. At the end of the year, you counted $3,000 worth of ending inventory. What is the cost of goods manufactured?

Answers

Answer:

$18,000

Explanation:

Beginning inventory is $2000

Purchased during inventory is $10,000+$5,000+$4,000= $19,000

Ending inventory is $3000

Therefore the cost of goods manufactured can be calculated as follows.

= $2,000+$19,000-$3,000

= $21,000-$3,000

= $18,000

Hence the cost of goods manufactured is $18,000

The American Opportunity tax credit:_____. A. is 50% of the first $1,200 of tuition and fees paid and 100% of the next $1,200. B. Is available for 2 years of post-secondary education. C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents. D. Is fully refundable even if the credit exceeds the tax liability.

Answers

Answer:

C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents

Explanation:

American Opportunity tax credit was called the HOPE credit. It is available for the first four years of an individual's post secondary school education.

It covers 100% of the first $2,000 cost for tuition, fees, books, and course material.

Items that do not qualify are room and board, transportation cost and personal expenses.

The tax credit is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.

The financial statements of Georgi Manufacturing Company report net sales of $595,000and accounts receivable of $80,000 and $60,000 at the beginning and end of the year,respectively. What is the average collection period for accounts receivable in days?

Answers

Answer:

43 days

Explanation:

The first step is to calculate the account receivable turnover

= $595,000/($80,000+$60,000)/2

= 595,000/140,000/2

= 595,000/70,000

= 8.5

Therefore the average collection period can be calculated as follows

= 365 /8.5

= 42.9

= 43 days

How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%?

Answers

Answer:

Bond Price = $927.904476 rounded off to $927.90

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.1 = 100

Total periods (n) = 5

r or YTM = 0.12 or 12%

The formula to calculate the price of the bonds today is attached.

Bond Price = 100 * [( 1 - (1+0.12)^-5) / 0.12]  + 1000 / (1+0.12)^5

Bond Price = $927.904476 rounded off to $927.90

From what you know of the company so far, what will be among the variousconstituencies that the CSIRT will serve

Answers

Answer:

The definition is defined throughout the clarification subsection below and according to the condition given.

Explanation:

It offers resources that let staff address data security knowledge as well as assistance for mitigation as well as cybersecurity management through the whole enterprise. It offers 7 reactions and concerted initiative in the treatment of accidents. The formation including its institution will influence the IT department and perhaps other departments that use its structures.

As the Chief Marketing Office (CMO) for a $100 million product company you need to lead the development of marketing plan for the company for the upcoming fiscal year.

Required:
a. What are the key success factors for the marketing plan process for the company?
b. Briefly describe the key elements of a strategic marketing plan.

Answers

Answer:

b

Explanation:

describe the elements of a strategic marketing plan

Alpha's preferred stock currently has a market price equal to $80 per share. If the dividend paid on this stock is $6 per share, what is the required rate of return investors are demanding from Alpha's preferred stock?

a. 7.5%
b. 13.3%
c. 6.0%
d. $6.00

Answers

Answer:

r = 0.075 or 7.5%

Option a is the correct answer.

Explanation:

The required rate of return is the minimum return that the investors require on a stock based on the risk associated with that stock. To calculate the required rate of return on a preferred stock, we divide the dividend provided by the preferred stock by the market price of the stock.

r = Dividend / Market Price

r = 6 / 80

r = 0.075 or 7.5%

What does Mrs. Morningstar say that Sancho and Bolsa couldn't find in a porta-potty?
toilet paper
a polar bear
an elephant

Answers

Answer:

its polar bear

Explanation:

i did the test on edge

According to the fragment of scene 6 of Sancho and Bolsa, it can be inferred that Mrs. Morningstar told Sancho and Bolsa that they could find a polar bear in a porta-potty

This story tells the story of Sancho and Bolsa two detectives who are involved in multiple situations. In the scene 6 of the story they hold a conversation with Mrs. Morningtar who says:

- Mrs. Morningstar: I won't hold my breath. You couldn't find a polar bear in a porta-potty.

According to the above, the correct response is to polar bear (option B) because these are the words Mrs. Morningstar mentiones. On the other hand she never mentionen toilet paper (option A) or an elephant (option C)

The question is incomplete because the text is missing. Here is the excerpt of the text.

- Bolsa: You can't be serious.

- Mrs. Morningstar: No, I don't know the address, but it's at the corner of Ocean and Pine.

- Bolsa: Thank you, Mrs. Morningstar. We'll let you know as soon as we find out anything.

- Mrs. Morningstar: I won't hold my breath. You couldn't find a polar bear in a porta-potty.

- Bolsa: Goodbye, Mrs. Morningstar.

- Mrs. Morningstar: And next time use the phone, don't just come by whenever you feel like it.

- Bolsa: Lovely woman.

- Sancho: Maybe William isn't really missing, maybe he just decided he didn't want to live with his aunt anymore.

Learn more in: https://brainly.com/question/13127666

How would empowering employees help deliver quality service?

Answers

Answer:

as empowering employees gives freedom and motivates them it would increase productivity and more output would be delivered

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

a. $11.25.
b. $450.00.
c. $37.50.
d. $112.50.
e. $1,800.00.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $7,500

Interest rate= 0.06/360= 0.00017 daily

Number of periods= 90 days

To calculate the interest earned, we need to use the following formula:

I= [PV*(1+i)^n] - PV

I= [7,500*(1.00017^90)] - 7,500

I= $115.62

Answer:

$112.50

Explanation:

Amount X Rate X Time =

(Principal of the note x Annual Interest Rate x Time expressed in fraction of year (360 days using the "banker's rule") = Interest)

$7,500 x 0.06 = 450

450 x 90 / 360 = $112.50

Which is “harder” on a car, highway miles or city miles? Why?

Answers

City miles because it makes the car have to drive at different speeds, and be stopped in traffic with several small stops and turns, whereas a highway mile is just a straight path driving at a constant speed.

Profit is defined as total revenue:__________ a. divided by total cost. b. times total cost. c. minus total cost. d. plus total cost.

Answers

Answer:

C. Minus total cost

Explanation:

Profit = total revenue - total cost (expenses)

The Up and Coming Corporation's common stock has a beta of 0.9. If the risk-free rate is 4 percent and the expected return on the market is 15 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)
a) 13.2%
b) 14.46%
c) 17.5%
d) 14.59%
e) 13.9%

Answers

Answer:

r = 0.139 or 13.9%

Option e is the correct answer

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate rM is the market return

r = 0.04 + 0.9 * (0.15 - 0.04)

r = 0.139 or 13.9%

Swifty Corporation sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 477 units at $19 each. Sales during the month totaled 355 units for $42 each. What is the cost of goods sold using the LIFO method

Answers

Answer:

COGS= $6,745

Explanation:

Giving the following information:

Beginning inventory= 79 units at $19

Purchase= 477 units at $19

Sales= 355 units

The units cost the same. In this case, it doesn't matter which method you use, the ending value will be the same.

COGS= 355*19= $6,745

Various studies indicate that cost savings from a TMS helps an organization reduce freight costs by:____

Answers

Answer:

6 - 10%

Explanation:

The full form of a TMS system is Transportation management system. It is majorly used in supply chain system in large organizations. It is considered to be one of the major technologies that is used in the supply chain management.

It is a logistic platform which used the technology to execute business plan and optimize the movements of incoming and outgoing  of the goods and materials to make the shipment process more efficient and smooth.  

In various studies made, it has been indicated or determined that a TMS system helps the organization to reduce the freight cost by 6 - 10 percent.

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