Selkirk Company obtained a $30,000 note receivable from a
customer on January 1, 2018. The note, along with interest at 12%,
is due on July 1, 2018. On February 28, 2018, Selkirk discounted
the note at Unionville Bank. The bank’s discount rate is 14%.
Required:
Prepare the journal entries required on February 28, 2018, to
accrue interest and to record the discounting for Selkirk. Assume
that the discounting is accounted for as a sale. (If no
entry is required for a transaction/event, select "No journal entry
required" in the first account field.)
In: Accounting
4. Calculate the Current Ratio for 2018 & 2019. What does it indicate and what trend do you see? Will they be capable of paying-off their current liabilities?
|
2018 |
2019 |
|
|
Current Assets |
12,494.20 |
5653.90 |
|
Current Liabilities |
5684.20 |
6168.70 |
|
Current Ratio |
7. Calculate the Debt to Asset ratio for 2018 and 2019. What does it tell about the long-term survival of the company?
|
2018 |
2019 |
|
|
Total Liabilities |
22,980.60 |
25,450.60 |
|
Total Assets |
24,156.40 |
19,216.60 |
|
Debt to Asset Ratio |
In: Accounting
Accounts payable turnover for Blue Industries increased from 10 to 12 during 2018. Which of the following statements best describes what this means?
A.The company paid its accounts payable more quickly in 2018, signaling a stronger liquidity position.
B.The company paid its accounts payable more slowly in 2018, signaling a weaker liquidity position.
C.Inventory turned over faster in 2018, meaning sales increased.
D.Not enough information is provided to form a conclusion.
In: Accounting
Duluth Ranch, Inc. purchased a machine on July 1, 2018. The cost of the machine was $34,000. Its estimated residual value was $10,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 2,500 units in 2018 and 3,200 units in 2019.
Required:
Part A - Calculate depreciation expense for 2018 and 2019 using the straight-line method.
Part B - Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.
In: Accounting
Given the following prices and quantities
|
Price (per kg) |
Quantities produced |
|
2008 |
2013 |
2018 |
2008 |
2013 |
2018 |
|
|
Milk |
3.95 |
3.89 |
4.13 |
675 |
717 |
436 |
|
Cheese |
61.50 |
62.20 |
59.70 |
117 |
115 |
115 |
|
butter |
34.50 |
35.40 |
38.90 |
77 |
74 |
82 |
Compute and interpret the Laspeyres price index number for the year 2018 with 2008 as base.
Compute the interpret the Paasche’s price index number for the year 2018 with 2008 as base
In: Statistics and Probability
On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 20,000 hours. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years’-digits method. c. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.
In: Accounting
On January 1, 2018, for $18.7 million, Cenotaph Company purchased 10% bonds, dated January 1, 2018, with a face amount of $20.7 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31
. Required: 1. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method.
2. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.
In: Accounting
Provide calculations and show steps for each:
Average Collection Period
Average Accounts Receivables/Net Credit Sales
2018 = 11,721/79,040 =
2019 = 12,046/90,621 =
Total Asset turnover
Net Sales/Average Total Assets
2018 = 90,621/118,007 =
2019 = 79,040/124,193 =
Debt Ratio
Total Debt/Total Assets
2018 = 53,521/111,820 =
2019 = 51,871/124,193 =
Times interest earned
EBIT/Total Interest
2018 = -2,926/-2,353 =
2019 = -2,181/-2,170 =
In: Finance
In: Accounting
In: Accounting