Reference no: EM131324415
The trial balance before adjustment for Sheffield Company shows the following balances.
| |
Dr. |
Cr. |
| Accounts Receivable |
$84,800 |
|
| Allowance for Doubtful Accounts |
2,420 |
|
| Sales Revenue |
|
$434,200 |
Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.)
1. To obtain additional cash, Sheffield factors without recourse $29,700 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.
2. To obtain a 1-year loan of $57,600, Sheffield assigns $72,000 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial.
3. The company wants to maintain the Allowance for Doubtful Accounts at 6% of gross accounts receivable.
4. Based on an aging analysis, an allowance of $5,733 should be reported. Assume the allowance has a credit balance of $1,071.
|
What is the time to maturity of the option
: Suppose you are considering a European call option with a strike price of $110. What is the time to maturity of this option where the boundary condition begins to be non-zero?
|
|
What is the beta of this stock
: The common stock of Jensen Shipping has an expected return of 9.96 percent. The return on the market is 8 percent and the risk-free rate of return is 4.5. What is the beta of this stock?
|
|
What is the return on each stock
: The following three stocks are available in the market: Stock A 11.2 % 1.34 Stock B 14.4 1.14 Stock C 16.9 1.54 Market 14.8 1.00 Assume the market model is valid. The return on the market is 15.6 percent and there are no unsystematic surprises in the..
|
|
What is the annually compounded risk free interest rate
: A non-dividend-paying common stock is trading at $100.- What is the annually compounded risk-free interest rate where the boundary condition begins to be non-zero?
|
|
Provide the journal entries required to record
: Provide the journal entries required to record each of the cases - The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial.
|
|
Derive and plot olivia''s engel curve for pie
: Draw a figure to illustrate the answer given in Solved Problem 5.4. Use math and a figure to show how adding an ad valorem tax changes the analysis. (See the application "Shipping the Good Stuff Away.")
|
|
Regional burn center after being rescued
: A 74-year-old woman is transported to a regional burn center after being rescued from a house fire. Apparently, a space heater was knocked over and an area rug caught fire. The fire quickly spread throughout the house.
|
|
Nonconstant growth-what is the current share price
: Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. If the required return on this stock is 13.75 percent, what is t..
|
|
Write a summary describing using different social media
: Write a summary describing using three different social media platforms with the objective of networking within your career field. Use your current social media accounts, or create new ones. Incorporate research regarding how to present a professi..
|