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Question
A company expects 5% of its newer accounts receivable to be uncollectible and 20% of its older accounts to be uncollectible. If the company has $40,000 of newer accounts and $5,000 of older accounts, the total estimate of uncollectible accounts is $2,000.
Answer
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General Investment Co. (GIC) purchased bonds on January 1, 2015. GIC's accountant has projected the following amortization schedule from purchase until maturity: Date
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Carrying Value 1/1/15 $194,758 6/30/15
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$7,790
$790
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d. None of these is correct.
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When using the equity method to account for an investment, cash dividends received by the investor from the investee should be recorded:
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b. As an increase in the Investments account.
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c. Discount rate
d. Future value of an annuity
e. Interest
f. Compound interest
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h. Time value of money
i. Simple interest
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_____ A series of equal periodic payments.
_____ Accumulation of a series of equal payments.
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$2,315 Total Liabilities
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1,525 Total Stockholders Equity
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790 Income Statement Data Sales
$786 Interest Expense
77 Tax Expense
32 Net Income
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23 Notes Payable (difference)
557.32 Cash (monthly payment) 704.55 (to record the second monthly payment)
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00 Notes Payable (difference)
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