Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Humphrey Incorporated decided to sell half of their Accounts Receivable balance to Bass Industries in order to get cash to purchase a new newspaper facility. On March 1st, Humphrey Inc. sold $1,600,000 of their AR balance without recourse. Under the arrangement, Humphrey was to handle disputes concerning service, and Bass Industries was to make the collections, handle the sales discounts, and absorb the credit losses. Bass’s factoring transaction assesses a 6% finance charge on the amount of receivables. They also retain 2% of the AR balance for to cover sales discounts.
Instructions
(a) Prepare the journal entry required on Humphrey’s books on March 1.
(b) Prepare the journal entry required on Bass Industries’ books on March 1.
(c) Assume Humphrey factors the $1,600,000 of accounts receivable with Bass Industries on a with recourse basis instead. The recourse provision has a fair value of $28,000. Prepare the journal entry required on Humphrey’s books on March 1.
Discuss the companys dividend policy between 20W9 and 20X3 and its possible consequences for earnings - Advise the directors of the share price for XYZ Inc which might be expected immediately following the announcement of their decision if they pur..
acquisition and disposition of property plantthe research paper should not be more than pages including one page for
Construct a time line for the investment.- Determine the payback period. - Calculate the net present value of the project.
Compute amount of gross profit to be recognized from the installment sale in 2009, 2010, 2011, 2012, and 2013 using point of delivery revenue recognition. Ignore interest charges.
How much higher would the companys first-year net income have been if absorption costing had been used rather than variable costing? Show computations.
What is the value of the investment today and what would the value be if the payments occurred for 39 years?
Assume, John Hankins, who owns Hankins Construction Co. and runs it as a proprietorship, had gross profit last year of $ 100,000. His personal and family expenses are $50,000 and he has $10,000 in exemption and deductions. What taxes would John pay a..
Assuming the double declining balance method of depreciation, illustrate what is the book value at the end of the second year if 1.5 million units were produced?
Tina is a new client for the firm. Illustrate what tax advice should we provide Tina about her prior and current tax returns concerning her songwriting career?
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. Information for the Statement of Cash Flows is indicated below. Compute the changes and use the information to finalize the Statement of Cash Flows as indic..
Prepare the journal entries for the issuance of preferred stock for land and issuance of common stock for cash
ABC Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. ABC expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd